A commissioner for the U.S. SEC, Hester Pierce, said in an interview with Bitcoin.org that bitcoin and the crypto market are maturing. Hester Pierce credits the trend to the market’s heightened interest from big institutions in the mainstream financial industry. She points out that the market is also creating several “quasi exchange-traded products,” a developing market characteristic. These involve investment vehicles like Grayscale Investments Bitcoin and Ethereum Trusts, which are remarkably successful with institutional investors.
Hester Pierce’s opinions come as the U.S. SEC is considering various applications for the first-crypto-based ETF (exchange-traded fund) in the U.S. market. The applications are filed from various organizations involving the distinguished fund manager, VanEck, the world’s biggest investment manager, Fidelity, and Grayscale. Nevertheless, the SEC has declined every Bitcoin ETF application it has observed so far. When asked if this could change in the future, Pierce contended that the market’s maturity and interest from investors could mitigate some concerns, the Commission possess about the underlying market.
Hester Pierce also talked about the progress in Canada in the context of several ETFs receiving approval. She says this is an indication of what might happen in the U.S. It is worth noting that Pierce also pointed out the uniqueness of the Bitcoin market, saying that it is never going to look similar to the equity market. She also admits that trying to apply the SEC’s recent framework to the crypto market when accessing the possibility of bitcoin ETF may be inappropriate.
U.S. SEC to Approve Bitcoin ETF With Change in Leadership?
Meanwhile, there is no validity, whether the latest bitcoin ETF applications will be successful or not. However, Pierce’s opinion indicates towards SEC’s willingness to change its relationship with cryptocurrencies. Moreover, in almost two weeks, legislators in the U.S. will appoint a new SEC chairman, probably Gary Gensler. Gary Gensler is a great advocate of blockchain technology and cryptocurrencies.
He is well known to have contended that he thinks bitcoin is not a security, a recent debate that is at the center of a dispute between SEC and Ripple Labs. Certainly, one of Peirce’s reasons for not confirming the SEC’s stand on the latest ETF applications was that the change in leadership could also mean a difference in the regulator’s approach. If this is true, the cryptocurrency ETF market, which is already developing worldwide, might soon witness the first U.S.-based competitor.