Crypto Mom Believes Market Has Grown, Remains Coy on Bitcoin ETF Approval

The cryptocurrency market has been described as matured by Hester Peirce, a Commissioner for the US Securities and Exchange Commission (SEC), otherwise known as Crypto Mom.

Peirce remarked during an interview with a correspondent of Bitcoin.org.

Cryptocurrency Market Has Greatly Matured

Peirce’s assertion was not unconnected to the emerging interest of institutional investors in digital assets.

She explained that the growing trend of large institutions in the mainstream financial industry picking interest in Bitcoin is an indication that the market has matured.

It would be recalled that several institutional investors like Tesla, Goldman Sach, and others have made bets on Bitcoin. 

However, many other institutional investors use investment platforms such as Grayscale Investment Bitcoin and Ethereum Trusts.

Earlier, Grayscale reported its Assets Under Management (AUM) was close to $50 billion. More specifically, Grayscale Bitcoin Trust (GBTC) assets are valued at more than $38 billion. 

04/09/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $46.1 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC $BAT $LINK $MANA $FIL $LPT pic.twitter.com/8RMLseCeQQ

— Grayscale (@Grayscale) April 9, 2021

While the SEC is yet to approve several applications filed for exchange-traded funds (ETF), there is rousing optimism resulting from the comment of its commissioner.

SEC’s Stance On Numerous ETF Applications 

In recent times, the SEC has been loaded with numerous proposals on the Bitcoin exchange-traded funds (ETF) in the US market.

Some of the notable companies jostling for approval include VanECK, Fidelity, Grayscale, among others. 

While the SEC has rejected every proposal that has been attended to in the past, Peirce maintains that there could be a paradigm shift due to market maturity and increased interest of serious investors.

She emphasizes that the regulatory agency might have to retrace its step on the proposals because of the cryptocurrency market’s maturity.

Peirce also referred to neighboring Canada, where several ETF proposals have been considered by the government, adding that it could also influence the government’s decision.

Most importantly, she sounded a caveat that applying the current SEC framework on the cryptocurrency market will not lead to Bitcoin ETF’s success.

As a result, she expresses the view that the SEC may likely reform its regulatory framework.

While the SEC has commented on VanECK BTC ETF filing, Pierce’s remark seems to ooze out the assurance that SEC may probably reconsider its relationship with cryptocurrency.

Given that Congress will approve the nomination of a new SEC Chairman in less than two weeks, who is likely to be Gary Gensler, there is a ray of hope in the crypto space.

This is because Gensler is reportedly a lover and supporter of blockchain technology.

At press time, the stance of the SEC concerning ETF applications still lies in limbo.

Nevertheless, Pierce alluded that the non-disclosure of the SEC’s view on the latest ETF applications is due to ongoing leadership change.