It was only a month ago that the SEC had approved a Bitcoin futures exchange-traded fund (ETF) for Teucrium. But a spot Bitcoin ETF has been long-awaited.
Sal Gilbertie, CEO of Teucrium, pointed out a sign in the footnote of the approval letter which could hold the answer to this quizzing situation.
With regards to the possibility of fraud and manipulation, the approval letter reads,
“If, however, an exchange proposing to list and trade a spot bitcoin [product] identifies… the regulated market with which it has a comprehensive surveillance-sharing agreement, the exchange could overcome the Commission’s concern…”
This, Gilbertie says, points to the fact that the SEC is willing to accept a spot Bitcoin ETF if the exchange listing the ETF accepts the surveillance agreements that come along with it.
Regarding this, Gilbertie says,
“I don’t think it’s gonna happen because I don’t see why those big crypto exchanges would want to centralize when the whole industry is made up around a decentralized concept.”
Gilbertie says that it would take years before the SEC takes such an initiative. He says,
“The SEC is not going to succumb to that kind of pressure.”
He says that the SEC would rather have Bitcoin and crypto under surveillance unless there is a change in leadership that causes a complete flip on its current outlook.
He further stated,
“I don’t see how they’re going to back down from that when they’re all about investor protection.”
The SEC had previously written that the stock exchanges that sponsor spot crypto ETFs have not adequately rebutted the SEC’s concerns about manipulation and fraud.
The agency has also expressed concern about crypto spot exchanges being unregulated. Given the SEC’s repeated worries about market manipulation in rejecting spot Bitcoin ETF applications, it is probable that the agency will continue to reject spot Bitcoin ETF applications, at least for the time being.