The Chamber of Digital Commerce Says ‘It’s Time for a Spot BTC ETF’

American crypto advocacy group Chamber of Digital Commerce has called out the Securities and Exchange Commission (SEC) on its refusal to approve a spot-based Bitcoin Exchange-Traded-Funds (ETF). 

According to the report released on Monday tagged ‘The Crypto Conundrum’, the time has come for investors in the United States to have access to a spot bitcoin ETF that directly holds Bitcoin (BTC).

The Crypto Conundrum detailed the analysis of the pursuit of the community of investors as well as the SEC’s ‘unjustifiable’ refusal to approve a spot BTC ETF. 

Per the argument made by the crypto advocacy group, the SEC’s refusal is not from a position of concern for the regulation of the BTC ETF or any other uneasiness raised by the regulator. Rather, it is a political campaign for the power of autonomy over bitcoin and the platforms which distribute them.

Interestingly, the body argues that the SEC seeks an agenda to obtain the singular responsibility of controlling the exchange firms and platforms where Bitcoin is traded. Currently, that is a position that the United States regulator has not attained.

SEC’s ‘Unjustifiable Unwillingness’ to Approve Spot BTC ETF

Over the years, many Bitcoin ETF applicants have been saddled with several regulatory hurdles specific to BTC by the SEC. 

Even after scaling through the frameworks, the regulator still ends up disapproving their request. So far, this has not turned out well for U.S investors who are only allowed access to direct BTC investment which guarantees no financial security to their portfolio.

Frankly stating the unjustifiable unwillingness of the SEC, the Conundrum mentioned that “U.S. retail investors are denied access to regulated bitcoin products and limited to direct bitcoin investments which don’t provide the investor protections that come with typical financial advisor relationships and the SEC’s registration and disclosure framework.”

One of the crypto firms that the SEC has not given its blessings in the form of approval is global investment manager VanEck. 

The investment firm had earlier applied for a Bitcoin ETF which was rejected. VanEck then put out another application a few months ago but has been waiting for a long time now. Eventually, the regulator postponed its response to VanEck to 11th October 2022.

Also, the request by the Chicago Board Options Exchange (Cboe), BZX Exchange application to list and trade spot BTC ETF was disapproved by the SEC. The regulator claimed that the firm failed to meet industry standards. This has been the trend for the SEC in recent times as it keeps turning down spot Bitcoin ETF applications in the United States.