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Bitcoin [BTC] ETF: Chairman Jay Clayton still on the fence citing ease of market manipulation




Bitcoin [BTC] ETF: Chairman Jay Clayton still on the fence citing ease of market manipulation
Source: Pixabay

The Chairman of the Securities and Exchange Commission [SEC], Jay Clayton, is still on the fence about the hotly anticipated Bitcoin ETF, citing a list of conditions that should be met prior to its approval.

In a recent interview with FOX Business, Clayton stated that his concern with giving the green light to public trading of Bitcoin was the digital asset’s vulnerability to manipulation. Citing the volatility of the coin, the Chairman wanted to ensure investors were kept safe from untoward market movements.

Clayton stated,

“What I’m concerned about at the moment is if it can be reasonably demonstrated that the underlying trading is generally not manipulated, it’s happening on reliable venues with good rules and that custody is something we can feel comfortable about.”

The SEC is looking at proposals from several companies regarding the ETF. Last year, Clayton rejected one of those from the Gemini exchange founders, Cameron and Tyler Winklevoss.

VanEck, an investment firm, SolidX, a financial services company and the Chicago Boards Options Exchange [CBOE], still await a decision on their bid for the Bitcoin ETF, which was filed back in January. The crypto-centric financial firm, Bitwise Asset Management had also sent their application for the ETF in February.

The Chairman clarified that he hadn’t decided which company will spearhead the ETF project, nor did he opine whether any of the applicants satisfied the rules of the issuance. However, the SEC will make a decision regarding the Bitcoin ETF in the coming months, he said.

Despite the Chairman’s uneasiness with approving the cryptocurrency Exchange Traded Fund, he hailed the technology behind Bitcoin,

“I think this technology has and is already demonstrating pretty significant promise, but it’s demonstrating significant promise in the places where it’s consistent with our approach to capital raising in the past.”

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TD Ameritrade is testing Bitcoin [BTC] and Litecoin [LTC] trading on its brokerage platform, says Charlie Lee





Source: Unsplash

Nasdaq, the second largest stock exchange in the world, is reportedly testing the trade of Bitcoin-based products on its platform. A Twitter user named, Cryptopolis, claimed the purchase of one Bitcoin [BTC] via TD Ameritrade account, on the social media platform. This news was backed by Charlie Lee, the creator of Litecoin, who stated that TD Ameritrade, a leading brokerage platform, was not only testing Bitcoin, but also Litecoin.

The initial tweet by Cryptopolis stated,

“BREAKING: BTC is now being traded on the Nasdaq! I bought one BTC through my TDAmeritrade account! According to the chart it started trading April 10, 2019!! Other digital assets are soon to follow!!”

This was soon followed by an update, where the Twitter user stated that it was “not a real trade”, but a testing phase. The user also posted a conversation with TD Ameritrade’s support system, with the support person stating that further information on the matter cannot be disclosed yet. The Tweet read,

“According to TDAmeritrade support – it’s not a real trade in my account – it appears they are testing only using their Paper Trading platform. Support said “I’m not able to speak on it” -They did not know what CXERX is. Strange… But something is going on for sure!”

Source: Twitter

Source: Twitter

Charlie Lee, the Managing Director of Litecoin, said,

Lee further stated,

“It’s only availabe for paper trading on ThinkOrSwim right now. Search for CXERX to find both BTC and LTC.”

Steven Lussier, another Twitter user, stated,

“Sorry but unless trades are physically settled I would be hesitant to cheer!!! Smells like rigging. Just look at the Precious Metals Market this morning!”

Apart from this, Bitcoin [BTC], the largest cryptocurrency by market cap, recently broke the $5500 mark, with the coin recording its highest in the past five months. According to CoinMarketCap, at press time, Bitcoin was trading at $5605 with a market cap of over $99 billion. The coin had a trading volume of $16.33 billion and had witnessed a surge of over 5% in the past 24 hours.

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