The Commission on securities and exchange Commission (SEC) announced a review of its verdict on cancellation ETF on Bitcoin, which made last month. We are talking about the application, which was filed by the company Bitwise Asset Management. Now it hopes to start the process of further discussion of the prospects of the ETF for cash, although the formal denial of the SEC in October, almost deprived of cryptocommunist any hope to see the launch of the ETF in 2019.
The launch of the ETF for cash
Bitwise has applied for ETF in early 2019. In the hope to support your initiative, something the company’s experts published a study of the cryptocurrency market in which there is a speech about the serious manipulation of the prices of Bitcoin and altcoins. According to them, the introduction of the ETF could supposedly solve this problem.
However, none of the arguments are not forced the financial regulator to back down from their beliefs: while it is not possible to run an ETF on Bitcoin. Head of research at Bitwise Matt Hogan said the company took advantage of the 30-day period for challenging a decision SEC. During this period , the analysts should provide the Commission with further evidence that the industry really needs ETF.
In theory Bitwise could successfully challenge the decision of the SEC and to convince the financial regulator in the right. In practice, however, this procedure has repeatedly initiated after the cancellation of the previous applications for ETFs from other companies. While none of them failed to succeed.
This is interesting: Why ETF Bitcoin has no value? The developer of the cryptocurrency.
Technical Director Interdax Charles Fan believes that the industry does not need an ETF on Bitcoin. If the SEC will still approve such an initiative, the main ideas of cryptocurrencies will supposedly be threatened, because thanks to the ETF a large amount of coins will be concentrated in the hands of institutional investors who are large holders of funds by type of investment funds and insurance companies. In this case, they are supposedly able to manipulate the market to their advantage.
This effectively leaves investors without their keys. ETF diametrically opposed to the concept of decentralization that underlies Bitcoin.
And yet there are other points of view. According to the cryptanalyst Willie Woo, persistent struggle of companies for the right to launch its own ETF for Bitcoin cryptocurrency really helps. He noted that after the first application of an ETF from the Winklevoss brothers the crypt have finally begun to admit financial instrument to the SEC.
Before this coin was positioned as a convenient means for purchasing illegal substances. Refusal of the launch of the ETF on Bitcoin, wrote the Wall Street Journal, resulting in an industry filled with "smart money" cryptocurrency funds. That is, in the end "lose" in this matter is greatly helped niche cryptocurrency in General. Accordingly, what is happening now also has the potential to improve the situation of the industry of coins — and even if the denial to anything will not lead. Read more about the situation read in this article.
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