Why Won’t the SEC Approve a Bitcoin ETF? With Perianne Boring - WBD578

Perianne Boring is the Founder and CEO of the Chamber of
Digital Commerce. In this interview, we discuss the history
of Bitcoin spot ETF proposals, the numerous rejections and
changing conditions for approval, and why the SEC won’t
approve a Bitcoin spot ETF.


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The first application for a Bitcoin spot ETF in the US was
made by the Winklevoss brothers back in 2013. The SEC
rejected this proposal in 2017. Since then the SEC has
rejected applications from at least 16 different companies,
some of whom have made multiple applications. The last
rejection was in early October.


It’s not that the SEC dislikes ETFs. There are over 2,500
ETFs in the US market with over $7.2 trillion AUM. Further,
there is also strong demand in the market: over 99% of the
11,400 letters sent to the SEC in relation to Grayscale’s ETC
application were in support. In the meantime, Bitcoin spot
ETFs are being approved across the world, most notably across
the border in Canada.


The Chamber of Digital Commerce, the blockchain trade
association, has assessed the history of Bitcoin spot ETF
applications accounted for in a report. This outlines major
inconsistencies in the way the SEC treats applications:
denials have conditions applied for subsequent applications;
these conditions are met, the new applications are denied;
rinse and repeat.


In addition, in 2021 the SEC approved the first US Bitcoin
futures ETF. Whilst the performance of the Bitcoin futures
ETF has tracked the Bitcoin price reasonably closely, futures
markets are by their very nature volatile as futures
contracts can be unpredictable. So, it is potentially a less
safe vehicle for investment.


The obvious question is, therefore: why won’t the SEC approve
a Bitcoin spot ETF? Perianne Boring, the CEO of the Chamber
of Digital Commerce, is of the opinion the decision is
political in nature. There is a wave of money waiting to
invest in such an ETF, which would accelerate the adoption of
Bitcoin. This is something many decision-makers are resistant
to. What’s clear is that with Grayscale suing the SEC the
issue is coming to a head.