You shall not pass: why SEC rejects all ETF for Bitcoin?

Yesterday the Commission on securities and stock exchanges of the USA has rejected all requests for the creation of a cryptocurrency ETFsbacked by derivatives. According to the lawyer Kobre Kim LLP Jake Chervinsky, the SEC is unwilling to approve ETF due to manipulation on the stock market. This writes the CCN.

When the first ETF on Bitcoin

Last month, the Commission rejected the application of the Winklevoss brothers, referring to the manipulation of the price of Bitcoin. In a statement, they said that they will continue to use regulated exchange, Gemini to determine the value of a Bitcoin ETF in the future. However, members of the SEC this explanation did not satisfy.

The latter ETF has a good chance for approval, because the exchange triptofana received the support of prominent men from wall street and even the Nasdaq. In response to the rejection of the investment company ProShares and Direxion has filed a new statement about the creation of the ETF. Yesterday it was officially canceled. However, the SEC resumed its consideration of the case.

Commission representatives argue that the stock market is still too small to ETF here could function normally. These words commented Chervinsky.

So why all these SEC rejects ETF? The decision was limited to the risk of market manipulation and fraud. SEC may approve only those ETFs that are “designed to prevent fraudulent practices.” In the opinion of the members of the Commission, such an ETF does not yet exist.

Czerwinski added that the SEC is not satisfied with the presence of futures for cash, which are traded on the CME and CBOE. In the opinion of the commissioners, a large part of Bitcoin still goes through unregulated exchanges.

In the long term, approval of the ETF can only occur when the futures market for money will rapidly expand. To do this, the process must involve large financial institutions like Goldman Sachs.

How long left to wait for the creation of ETFs? Share your predictions in cryptodata.


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