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Bitcoin ETF fate to be decided by the SEC after November 5

Priya

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Bitcoin ETF fate to be decided by the SEC after November 5
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The United States Securities and Exchanges Commission will be announcing their stance on the nine Bitcoin ETFs, which were previously rejected, after November 5, 2018. The commission has set the date as the deadline for reviewing the comments regarding the ETF.

In the month of August 2018, the SEC had released a statement rejecting nine Bitcoin ETFs. This included Cboe BZX Exchange’s GraniteShares Bitcoin ETF; Granite Shares Short Bitcoin ETF; NYSE Arca Inc.; Proshares Bitcoin ETF; Proshares Short Bitcoin ETF; NYSE Arca Inc.; Direxion Daily Bitcoin Bear 1X Shares; Direxion Daily Bitcoin 1.25X Bull Shares; Direxion Daily Bitcoin 1.5X Bull Shares; Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares.

The main concern pointed out by the Commission for the rejection of the nine ETFs was the prevention of fraud and market manipulation. The NYSE Arca Inc. Bitcoin ETF had received 13 comments, out of which most of the comments were against the approval. The comments claimed the market to be manipulative and prone to Ponzi schemes, quoting the example of BitConnect, Kraken, one of the leading exchange platform, and the pump & dump schemes orchestrated on Telegram.

This was followed by the SEC revoking their statement the next day, stating that they will review the “Division’s actions pursuant to the delegated authority” and that the Division’s action pursuant to delegated authority had automatically stayed.

SEC had stated:

“On October 4, 2018, the Commission issued an Order Scheduling of Statements on Review, setting November 5, 2018 as the date by which any party or other person may file a statement in support of, or in opposition to, the action by the Division pursuant to delegated authority”

In the wake of the nine Bitcoin ETF decision, Reggie Brown, aka Godfather of ETF, said that he does not have hopes on the SEC approving the Bitcoin ETF anytime soon. According to Business Insider, during a speech at Georgetown University’s Financial Markets Quality Conference, he said that the Bitcoin ETF will not be approved “no time soon”. He added:

“It’s very difficult for the Commission to wrap their heads around a positive approval because there’s no data yet… the markets just aren’t here.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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Facebook’s Libra is a double edged-sword, but will benefit Bitcoin, says Caitlin Long

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Facebook's cryptocurrency Libra is a double edged-sword, but will benefit Bitcoin [BTC], says Caitlin Long
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On 18 June, the world’s biggest social media platform, Facebook, introduced its new cryptocurrency, Libra, set to launch in the first half of 2020. The coin that would have its own blockchain will be backed by several sovereign currencies, and these reserves would be managed by the Libra Association. The association will also be engaged in several other key activities, which would focus solely on the development of the Libra ecosystem.

Notably, the coin has brought together major players in both the financial and technology industry including, MasterCard, Paypal, and Coinbase. Despite such strong backing however, the concept of the coin was soon shot down by several influencers and government authorities.

The French Minister of Finance and Economy, Bruno Le Maire, released a statement asserting that Facebook’s digital currency becoming a sovereign currency was “out of question,” adding that “it can’t and must not happen.” Along with this statement, the Finance Minister also raised concerns about money laundering and terrorism funding and urged G-7 countries Central Bank Governors to draft a report on the new “global currency” for their meeting in July.

Further, Facebook’s cryptocurrency is also facing hurdles in its native country. Maxine Waters, Chair of the House Financial Services, has requested the social media giant to hit the pause button on the development of Libra, until Congress and regulatory authorities hold a discussion on the digital currency. This request was put forth mainly because of the firm’s “troubled past.”

In an interview with WhatBitcoinDid, Caitlin Long, Co-founder of the Wyoming Blockchain Coalition, stated that Libra had its pros and cons, adding that it was a “double-edged sword.” However, the blockchain evangelist continued to assert that this was going to benefit Bitcoin, stating that the social networking platform was “making cryptocurrency a mainstream word.” She added that Facebook would introduce the concept of digitally scarce money to people and that these people would look for the best cryptos that would retain the most value over time. That crypto was going to be Bitcoin, she said.

Long stated,

“This is a detour kind of like Andreas analogy, it’s the intranet before internet. We’ve even seen it in this industry, it’s blockchain not Bitcoin but people are coming full circle back around to Bitcoin. These are detours that are ultimately helpful to gaining adoption and wider support, but they’re not where we end up and I think we will end up in Bitcoin.”

Further, Long was asked whether Libra was going to be its own currency, considering it will not be pegged to a specific currency, but several fiat currencies. To this, she stated that Libra was indeed going to be a currency of its own, similar to Bitcoin. She stated that it was going to function like a “central bank,” remarking that it would be a “private version of a central bank.” Long went on to add,

“They’re going to be managing reserves against the liability. For them it will be the people who own the coins and they will be managing the reserves against that […] they are going to be marketing this in the developing world, this is going to be a developing world concept probably more than a developed world concepts […] so my guess is this is mostly an emerging market phenomenon secondarily a European phenomenon and lastly a U.S. phenomenon.”





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