CEO of Abra, a crypto payment startup, has exclaimed the primary reason for the rejection of Cryptocurrency Exchange Traded Funds(ETFs) by US Securities and Exchange(SEC) is that the applicants not fitting the archetype.
Bill Barhydt, CEO of Abra, stated on the CNBC’s show, ETF rejections are majorly cause,“people who are doing the applications don’t fit mold of who the SEC is used to approving.“
According to Bill Barhydt, in order for the applications to be accepted by SEC, who “looks, feels and smells” same as the SEC expects from their usual array of accepted applications i.e. what they are used to. He also stated that trusted financial organizations have a much better chance at securing an ETF as compared to a new firm or startup.
Barhydt also predicted strongly that BTC ETF would be approved by SEC next year.
“It’s going to happen in the next year, I would actually make a bet on it. There is too much demand for it.”
These statement by Abra’s CEO is in succession to the multiple famous rejections that SEC presented towards hopeful ETF applicants.
For example, This July, SEC had denied an application appeal by the Winklevoss twins. Following that, in August, SEC again postponed their decision regarding the listing and trading of BTC ETF from VanEck and SolidX until September 30.
Interestingly, CEO of Pantera Capital, Dan Morehead predicted that BTC ETF would be taking “quite a long time”, stating that crypto adoption was in its initial stages. He also stated that the most recent asset to be gaining an approval of ETF was copper which has been on earth for 10,000 years.
Bitcoin is currently trading at $7,027 at press time falling close to 5% in a couple of hours.