New York-based cryptoexchange makes a bearish report for BTC exchange-traded fund

New York-based cryptoexchange makes a bearish report for BTC exchange-traded fund
Sep 20, 2018 by Rico Wise

As per the new report recently revealed by the Ney York’s OAG, a large quantity of cryptoexchanges might be exposed to market manipulation, which would greatly undermine the financiers’ hopes for a BTC ETF approval, or any other crypto-related products in the upcoming future.

In accordance with the decision of Jay Clayton, the chairperson of the U.S. SEC, Bitcoin is not a security pursuant to the federal legislation. Nevertheless, an exchange-listed fund, which offers financiers exposure to BTC currency would be considered a security, explaining the reason for the SEC’s increased attention to giving the green light to such products.

Whereas some of the applications for BTC ETF pursued aims to establish a fund with backing of the physical Bitcoin, the majority of the analysts believes that the first digital currency exchange-traded fund to achieve the SEC’s approval will be the one offering BTC futures, which are in their turn managed by the CFTC.

At the moment, BTC futures are accessible at a couple of supervised Chicago-based stock exchanges, namely CME and CBOE. While the latter was the pioneer with its digital currency product, CME is the one with better daily trading volumes. It also uses a broader specter of spot trading markets for the basis of its pricing data.

As per the OAG report, some of the cryptoexchanges are suspected for engaging in market manipulation, which can obstruct the process of approval of any exchange-traded funds whatsoever.

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Bitcoin
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