Image: Cryptocurrencies are not going to be part of the mainstream finance for now.
Today just after 4PM Eastern time the SEC finally dropped the long postponed decision regarding the proposed COIN ETF, the first Bitcoin exchange traded fund.
The SEC cites lack of regulations and the fact that BTC markets can be manipulated as the main reasons for rejection of the rule change.
[…] the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest. Full SEC announcement
Even though there is another BTC ETF proposal lined up for the 30th of March and Ethereum has a proposal for listing, it seems that any cryptocurrency exchange traded fund is off the table for now.
The ETC product (created by Barry Silbert’s Grayscale) is supposed to launch this month though, even though it will probably start trading over-the-counter first. It is modeled after the Bitcoin Investment Trust (GBTC) which is also a Grayscale product.
Eventually, just like Bitcoin Investment Trust, it may start trading over the counter, Silbert said in an interview. The bitcoin trust, started in 2013, is currently waiting for approval to list on the NYSE Arca market.
Classic ether’s development and rules governing the nets; recently, developers announced there will be no more than 230 million classic ether tokens issued – a decision that makes the digital currency a scarce resource, just like bitcoin.
In short, it is not going to get any easier for legacy investors to trade cryptocurrency in the months to come, but that’s about it. Cryptocurrencies are for now just cryptocurrencies, the niche speculative bet on the future. That’s not quite a reason to panic.
They have two mutually exclusive, and self destructive ideals. Pursue valuation from regulated sources. Or undermine those sources they pursue. These Ideas can’t exist on the same chain, there isn’t some quantum solution. They need to fork to meet both, or continue in purgatory. meanwhile, Ethereum will just find implementation and application as a tool. It really is oil vs gold. via /r/ethtrader
Comment on "Bitcoin ETF rejected, Ethereum ETF is probably off the table too"