Why the SEC still did not approve of the bitcoin ETF: experts


Captainvalor all over the world are waiting for the decision of the Commission on securities and exchange Commission (SEC) to launch a bitcoin ETF. SEC already avoiding loud statements, but continues to delay the verdict. ihodl.com talked to experts about what’s bothering controller and when to wait for the exchange triptofana.

Danil Yakovlev, development Manager of trade infrastructure Zichain:

The main concern of the SEC raises the possibility of price manipulation in the cryptocurrency market. There is no regulation of crypto currency exchange are publishing a non-existent volumes of trading in bitcoin is basically conducted with the use of questionable tablconv like Tether.

As long as it may harm the investors of the bitcoin ETF, expect a positive decision is not necessary. The SEC is currently trying to understand the structure of the cryptocurrency market and to understand the position of all participants, so we do not see immediate ban of the regulator to create a new financial instrument.

The chances of approval bitcoin ETF this year we believe is minimal, because the infrastructure of the cryptocurrency market in the last six months has not changed.

However, several major classic players in the financial world are on the final stage of launch decisions on storage, trade and manage digital assets for institutional investors. Therefore, the cryptocurrency market may be Mature enough for the emergence of ETF bitcoin in 2019.

Michael Palyutin, President of RPK Capital Investment at home:

I think soon bitcoin ETF will not be approved. Still, the failures were due to a small amount and manipulative cryptocurrency market, the vulnerability of investors. As we understand it, in this respect, little has changed.

Among the requirements of the Commission to the companies interested in the launch of the ETF, ensuring sufficient liquidity, physical storage and determination of the exact price, regardless of exchange rate fluctuations.

Even if the company will be able to answer them, the basic problems remain. The market is still very thin, even small volumes (50-100 million dollars) can destabilize it, and it’s a huge risk to your capital. But if to speak about volumes of 500 million and more? The consequences can be critical.

Gleb Pilecki, PR-Manager Tugush Blockchain Capital:

I think that the reason for refusal remains the same: a lack of proper use of the bitcoin ETF as a new financial tool.

SEC doesn’t want to be responsible for possible negative consequences that can grasp not only kriptonyte, but also the entire financial sector. Undoubtedly, the bitcoin ETF carry a potential to attract huge funds for the rapidly growing cryptocurrency market, but how it will respond to the banking system and the stock market? And, in the end, how will it affect the development of kryptonyte in General?

Until definitive answers from SEC there, which means that they are going to carry the decision again and again, until at least some confidence.Bitcoin is a very risky asset. It appeared relatively recently, and its regulation is still the conventional concept. That is why its development is really difficult to predict. Cryptocurrency is constantly exposed to manipulation, on the part of exchanges and companies, and by large shadow investors. The bitcoin ETF can be seen as a bridge between kriptonite and traditional financial institutions, which are now in indecision looking at the stagnant market. The first tired of waiting for another jump in prices to $20 000 and have benches to fall into and starting to understand the appeal of certainty in the market.

And the second is afraid to invest because of the high volatility and lack of legal basis, relying on the usual Bank standards.

So as soon as the ETF will become available and legal tool, they are an important part of how a professionally managed, and self-made investment portfolios. After all, it will give the opportunity to use the advantages of the first cryptocurrency without any risk or inconvenience. It is worth Recalling that, on 23 October, the SEC organized a meeting with companies that are planning to launch cryptocurrency exchange traded funds. The Department ruled that it must decide cryptocurrency exchange-traded Fund from VanEck until March 2019.

This means that we will face another six months of uncertainty, a company engaged in the management of the assets of the cryptocurrency, will get another chance to entice impatient investors in their offices.

Alexander kuptsikevich, senior analyst at FxPro:

The negative attitude of the SEC can understand that they were concerned about the dependence of the formation of the basic course BTC from cripture, which were not sufficiently regulated and liquid. In the case of rejection of the brothers Winklevoss landmark would be on their own exchange, Gemini. After the order was submitted already focusing on the base price of BTC, in the context of futures on the CBOE and CME, but there has been a failure because of the size of this market. However, now the situation is changing: a major cryptocracy rapidly entering the legal field through the introduction of KYC (know your customer) and AML (measures for combating money laundering). The futures market is increasing, leading investment banks are preparing solutions for institutional investment and, therefore, the SEC will get the desired formula: “regulation+liquidity”. The approval bitcoin ETF — a matter of months, and the first application can be approved in early 2019. It is believed that the highest chance to “green light” applications SolidX and VanEck, due to the large experience in the launch of the ETF on the us market.

Anton Shugai, head of the blockchain laboratory brdt.pro:

The main reason why the SEC again delays action on bitcoin ETF is that for them it is a new sector for work that does not have established rules and regulations.

As a cornerstone of the SEC puts the safety of the investors (as they have repeatedly stated), the approval bitcoin ETF depends on the regulation of kryptonyte. Once clarity on this issue, and the launch of a new financial instrument is likely to be postponed to 2019. It is also likely that the SEC will avoid harsh formulations to avoid accusations of market manipulation (they tried that once before — when the SEC banned nine ETFs, and the market has fallen by 5%).

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