February 14, 2022
The SEC's mission is to protect investors and they are clearly failing by not approving a spot Bitcoin ETF. For people to get Bitcoin exposure they have to either go to spot markets where there is risk of hacks/costly user error or the recently approved futures ETF which does a terrible job of tracking Bitcoin spot prices. Less technologically savvy people are at a serious disadvantage without a spot ETF when they are forced to buy Bitcoin outside of their brokerage account or buy a futures ETF which will always perform worse than the underlying. 3x leveraged ETFs are ubiquitous in this market and are much worse for retail investors. Commissioner Peirce is correct in her comments that the SEC needs to do a better job of accommodating innovation. Stop using antiquated frameworks and attempting to apply them to new technologies. The current framework is pushing people to unregulated, less transparent markets where they are more likely to be harmed. Bring crypto to the public markets where there can be transparency and audits to ensure investors are protected. DO YOUR JOB and innovate the SEC before you get left behind. The people need to have confidence in their regulators and that is diminishing with each and every spot ETF denial.