Hester Pearce, Commissioner of the U.S. Securities and Exchange Commission (SEC), believes that the cryptocurrency market is becoming more mature due to the fact that more companies from the world of classical finance, i.e. institutional investors, are entering it.
She points out that big companies are coming into cryptocurrencies, but the lack of bitcoin exchange-traded funds (ETFs) in the U.S., for example, has slowed the development of the cryptocurrency market somewhat. As a result, investors are looking for bitcoin ETF analogues, which is why Grayscale trusts are very popular, through which more than $50 billion has already been invested in various digital assets.
During Hester Pierce’s tenure, the SEC has rejected several applications for bitcoin ETFs from one of the largest investment management companies in the world, Fidelity, as well as from Grayscale itself. But the number of applications for such funds is not diminishing – there are now nine. Goldman Sachs announced its intention to launch a new ETF that could potentially invest in bitcoins as well.
Pierce believes the bitcoin market “will never look like the stock market, for example.” While acknowledging that Canada has already officially launched two bitcoin ETFs, the SEC commissioner noted that current regulatory practices in Washington may not be quite up to the task of giving the go-ahead to launch bitcoin ETFs in the U.S.
But that could change. Gary Gensler is expected to be confirmed as head of the SEC by the US Congress in two weeks. Given the fact that Gensler is considered a blockchain technology supporter, the likelihood of bitcoin ETF approval in the U.S. increases.