Dreams of a bitcoin ETF have been shattered once again. Securities & Exchange Commission Chairman Jay Clayton claimed that bitcoin exchanges just don't have the proper monitoring or sufficient transparency to allow a bitcoin ETF. To quote;
"What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation. It’s an issue that needs to be addressed before I would be comfortable."
Like I have been saying, the SEC hates bitcoin (cryptos) and will be a major impediment to ever getting a bitcoin ETF up and running. Sad, but true.
(Bill Taylor/ Fintek Capital)
"SEC Chairman Jay Clayton has claimed that bitcoin exchanges lack sufficient transparency and monitoring for the market to see approved Bitcoin Exchange Traded Funds (ETFs).
According to CNBC, at the Consensus Invest Conference in New York City recently, Clayton said:
"What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation. It’s an issue that needs to be addressed before I would be comfortable."
Clayton primarily feels that a Bitcoin ETF would be too easily manipulated and that not enough safeguards are in place to prevent as much. This goes in line with ongoing actions and investigations by the federal government into Tether and Bitfinex, where they may ultimately allege that Tether was used to manipulate the moving price of Bitcoin as a whole.
Overall, the Bitcoin market is too nascent to have the sort of tools that the SEC would like to see at the disposal of its exchanges in order to approve an ETC, which would essentially be a method of investing in the entire Bitcoin market without holding Bitcoin. After the Winklevii were denied their application for an ETF, they enlisted the help of Nasdaq to use its monitoring software on their own exchange..."
Full Story at CCN.com