- Jokester paid $2.97 to record message about SEC Chairman and Bitcoin ETF approval on the immutable Bitcoin blockchain
- SEC has rejected several Bitcoin ETF applications so far due to concerns about volatility, liquidity, custody and manipulation
- Approval of a Bitcoin ETF would allow mainstream investors to access Bitcoin through traditional accounts, but timing remains uncertain due to outstanding issues
Recently, a jokester paid $2.97 to record the one-liner “SEC Chairman on the brink of second ETF approval” on the Bitcoin blockchain. This was likely a reference to the long and turbulent process of getting a Bitcoin exchange-traded fund (ETF) approved by the Securities and Exchange Commission (SEC).
Background on Bitcoin ETF Approval Process
The approval of a Bitcoin ETF would allow mainstream investors to get exposure to Bitcoin through traditional investment vehicles like retirement accounts. However, the SEC has rejected several Bitcoin ETF applications due to concerns around volatility, liquidity, custody and potential manipulation.
The crypto community has eagerly anticipated the approval of a Bitcoin ETF for years now. Every time the SEC has delayed or rejected an application, it causes major price swings in the crypto markets.
Details of Latest Joke Transaction
By embedding this message in a Bitcoin transaction, the jokester has memorialized this specific moment in the ongoing ETF approval saga on the immutable Bitcoin blockchain forever.
The transaction itself cost a negligible $2.97 fee to process. This shows how cheaply someone can write arbitrary messages into the blockchain, which is public and permanent by design.
While SEC Chairman Gary Gensler has said he is neutral on cryptocurrencies, his agency has taken a very conservative stance so far. The SEC has emphasized investor protection over innovation in the nascent crypto asset class.
The Fate of a Bitcoin ETF Still Uncertain
Many Bitcoin investors view an SEC-approved ETF as inevitable, but the timing remains unclear. Some key issues around crypto market manipulation and custody solutions need to be resolved first.
For now, the SEC’s repeated delays and rejections of Bitcoin ETFs will continue to inject volatility into crypto prices. And this latest joke transaction will serve as an amusing example of how much anticipation there is in the crypto community around this issue.
The journey to a Bitcoin ETF has been long and unpredictable. But cryptocurrency advocates remain hopeful that the SEC will eventually approve a mainstream investment vehicle for Bitcoin. In the meantime, moments like this humorous blockchain transaction will be etched into Bitcoin history forever.
