Bitcoin ETFs still a no good with the SECsteemCreated with Sketch.

in bitcoin •  3 months ago

The price of Bitcoin took on added volatility after it was announced that the SEC, once again, rejected applications for a Bitcoin ETF.

This is an ongoing saga between Wall Street institutions that are itching to get into the crytppcurrency market and the government regulator. So far, all applications for ETFs relating to cryptocurrency, Bitcoin in particular, were either outright rejected or the decision was delayed.


On Wednesday, a day ahead of the deadline, the SEC rejected 9 applications for BTC related ETFs including 2 filed by ProShares.

The SEC stated:

"[T]he Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission's Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange's rules be designed to prevent fraudulent and manipulative acts and practices.

“Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.’ That failure is critical because, as explained below, the Exchange has failed to establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient, and therefore surveillance-sharing with a regulated market of significant size related to bitcoin is necessary.”

Thus far, the SEC is not changing the stance it initially took regarding these ETF applications. Overall, they view the Bitcoin market as something small, meaning it is subject to manipulation. On this point, it is hard to argue with them. A $100B+ market is not very big relative to other markets. With the manipulation seen in the gold and forex markets, both significantly larger than Bitcoin, it is easy to see their point.

This is a set back for Wall Street yet not of great surprise. Few expect an approval any time soon from the regulators. While they are not banning Bitcoin and other cryptocurrencies, the SEC is not exactly rushing to approve every fund idea that is put before them.

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we dont need the sec we never needed them!!

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I think it needs more time for the government to fully embrace crypto as one of the legal currency in the country. For now, crypro warriors still pushing its way to be legally accepted to the public.

It's good that these etf's were denied. Any etf not backed by real bitcoin will only dilute the market and not increase the value of bitcoin. Like the futures non backed products ruin the underlying asset.

they will keep kicking the can down the street for another couple years at least. Just sad.

taken great contain


What do you mean???


i like your post

Thanks 4 d useful info

If ETF approval takes a place, Crypto will be in the moon.

They're delaying it cause they know, once this goes through... they opened the door they can't ever close... it's only a matter of time in my opinion

They rejected bitcoin etfs but ok'd the TVIX.eacfb8c372b04277baacbdee41dad0fe01ec9e7333fc89e75dca6d0dd5640bca.jpg

@finprep thanks for sharing nice information. i think they are going to approve it according to my knowledge giving the current trend of the crypoto market. what do you say?

While an ETF would definitely allow for more money to flow into Bitcoin and cryptocurrencies, Bitcoin does not need an ETF. In fact an ETF is part of the system that Bitcoin is circumventing. To be honest, in my opinion the SEC rejecting an ETF is hurting people by not allowing them to hedge their wealth against the enormous debt bubble world economy.

I had mentioned to a friend I was thinking about investing in Bitcoin, and his view is that it is fake money. He thinks it will crash and burn very soon. Many of his friends have this same view. I tried to tell him it was perfectly legit, but he wasn't listening...

Thank for posting this kind of information!!!
Following you!

Your prediction is perfect. Thanks.

The ETF is inevitable, crypto likely needs more sideways time and then the trend continues :)

I'm sure this was expected. Maybe next year will be the year.

The Thing is SEC also Manipulating Crypto Prices, but Question is who is behind that?


Yes its Possible?

I think the future of crypto will end, because of the refusal of many countries to disapprove 😐

John macfee where are you....

This is husky bro... 😁


Hello @finprep Thanks for such useful information
Can you tell us that in future time does bitcoin value will degrade like in such present scenario

Congratulations @finprep!
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I hope they're all rejected. The whole point of Bitcoin is to cut out the middleman. If the big boys want to play the game, they can do it like everybody else and trade Bitcoin directly either OTC or through an exchange.

While the SEC has yet to approve a cryptocurrency-based ETF, other applications are still in front of the agency, including an ETF that would track a basket of cryptocurrencies that was filed in July by Bitwise, and the VanEck SolidX Bitcoin Trust. The SEC announced it was delaying a decision on approval or disapproval of the VanEck ETF until Sept. 30.


CBOE etf will the first, after that, we see a 100$ k price, I think it will be this year. Decreasing supply (abandonment, hodl, less mining), increasing demand..This is Bitcoin! This will go to the moon!

a lot of etf was decline and the movements of crypto now is so slow and hurtfull


It's like, a pump right before a decision is going to be made, and then a swift dump afterwards. So sad.

Hmm ETF And bitcoin what is the difference please?


Thanks for info


Most welcome

For me the funniest line in there is "...Overall, they view the Bitcoin market as something small, meaning it is subject to manipulation. .."

Unlike today and the past 15 years where the Stock market has been subject to massive manipulation due to quants? Or previously when a large institution (money that over shadows that of many small countries?

I worked on the trading floor for one of the larger investment banks in the mid 2000s when quants were introduced. And while our machines did not cause the slip, others on the street caused a massive sell off, forget the exact year and don't have time to look it up atm.

From my own perspective this all looks like "let's scare people" when it comes to crypto.

Ultimately, IMO it comes down to control. Centralized banks can control market manipulation and track where most dollars go. Until they can't of course. But that's ok. If they lose it all they will just wipe the slate clean, hold one idiot culpable and let the rest go #CDO

Agreed crypto-market is not that big atm. But what they should have stated is more people have the ability to manipulate the crypto market than the stock market.

I also watched as one trader in a hedgefund I worked for (I am in IT so am not well versed in trading itself), made a move @10am EST years ago and watched the market react his purchase or sell (forget which) caused a shift of a few points within minutes.

Back to my first sentence in this comment - what I find funny is the notion implied by the SEC statement is that the market is not susceptible to manipulation. Really? History shows a different story!

It's early and I only had one cup of coffee so if I missed the point of the above post my apologies I just love when the SEC acts all protective and shit, but in actuality has shown its teeth to be less than sharp.

A decent article on examples of market manipulation/misconduct

Thank you for the update. I've been told by one of my friends who doesn't work during the day and watches crypto YouTube all day :) that the issue will be revisited in February. I think it's a matter of time.

Good to know information , SEC will never approve BITCOIN, that is my view because it’s money in air rather than a product , if it approves then there has to be security and someone has to take care of that , let’s hope for the best

I hope btc is not manipulated, then sec might approve etf

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its depends on bitcoin and altcoins market size. only time will tell when the approval happen.

I still think it is just a matter of time before they get approved. These companies would't waste hundreds of thousands of dollars on lawyers and blockchain related divisions in their company if they weren't sure there would be some kind of approval soon. I think it will happen sooner rather than later.


In a few years when ppl realize how important cryptocurrencies are for the economy


Hmmmn... It's already happening
Your predictions are accurate



I am agree with you @@@annemariemay

if they are not damn sure they would not take this kind of block chain projects,,,, I am totally agree with you.


Security seems to of concern the most, capacity can always grow. Seems like every three or four months you will see a story where someone took millions or billions from some exchange they hacked and ran with it.


indubitably, things is happening right now.


This is very bad news for crypto market As if ETFs are get approved then it will be more easy to buy and sell bitoin in exchange just a single click.. in this way lots of money would have get chance to in this field.. liquidity will also increase...

Hope this is only time concern will approve soon...

Dear @finprep

I hope it is just a drama, who applied for this have spent million of dollars to their lawyers and invested billion of dollars in their block chain firm are damn sure sooner or later it will got approved sure.....

gracias por compartir lastima negaron las 9 solicitudes aun en el mercado no se ve reflejo del echo :(

Hi, how are you? Be part of my group of friends Follow me and I will follow you .. We will be very much in touch

I think this will happen eventually. But cryptocurrency is still pretty new to the vast majority of people. Remember, it was just the summer of 2017 when it kind of hit on the scene. Patience it will happen. Just keep spreading the word!


During the bull market, it feels like everyone was into it. But yes, definitely very new to most people, even though sometimes it might not feel that way.


Well most people dont care about the tech, only the money :/


everyone wants money dont you?


Sure. But then when the market matures and pump and dump coins aren't making us tons. People lose interest. You can see that by google trends and the amount of active users on steemit.


tell me about it, its only less than 5% of people really know about crypto.

Tough opposition from the SEC on making a Bitcoin ETF. They make a good argument that the asset's price can be manipulated by unknown actors.

Nice post

what is reason and why reject ETF?


they are afraid of btc

nice educational & informative post ...keep posting

Many govt such as Indian govt are against it but all the politician fund are been placed at there at time of demonization.

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its normal for people skeptical about thing they dont know.

well........this is like a serie what will happen with happen, you can see next chapter!!! excellent post man best regards!!