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Sui Chung, CEO of crypto index provider CF Benchmarks, says he is “very optimistic” about the US Securities and Exchange Commission (SEC) approving spot bitcoin exchange-traded funds (ETFs). Stated.
“We are very optimistic that the approval will be granted by the SEC, as they have consistently said they want to put in place certain safeguards,” Chong said in an interview with Bloomberg Television on Monday. said in an interview with Bloomberg TV on Monday.
He went on to explain that a key safeguard the SEC is seeking is “information sharing between ETF listing exchanges and cryptocurrency exchanges.”
“The criteria are very clear and we believe they are met by the rules we have all put together,” added CF Benchmark’s CEO.
Bitcoin is the only commodity traded on the ‘organized’ spot market
When asked how monitoring spot bitcoin ETFs differs from monitoring other commodity-backed ETF products, Chong pointed out that spot commodities are not typically traded in “organized markets.”
“Oil spots and gold spots are negotiated by phone, email, chat, etc., not organized markets,” he said.
As a result, commodities-backed ETFs traditionally have information-sharing agreements with derivatives exchanges rather than spot markets, “because it’s the organized market in which they trade,” he said.
But even though this is how things have traditionally worked, Chung noted that spot cryptocurrencies are different because they trade on organized markets.
“We’ve never been here before. Nothing is quite the same,” explained the CEO.
Read the full interview with Sui Chung on Bloomberg TV below.