the A Bitcoin ETF is a part of desired investment vehicles in the crypto-Community. It’s supposed to flush the money into the Ecosystem and institutional investors to attract. Now the Chairman of the SEC, Jay Clayton on the topic expressed.
By Phillip Horch
28. November 2018 share Facebook Twitter LinkedIn xing mail
Jay Clayton, Chairman of the U.S. securities and exchange Commission, said on 26. November a hotly debated topic in the cryptographic Community: the Bitcoin ETFs.
they have a reputation for safety for potential investors to radiate and attract new money into the market. The exchange-traded funds (Exchange Traded Funds) are investment funds, which track indices and have the same Price performance as the underlying Index (in this case, would be to have the Bitcoin). Thus, investors can ultimately benefit from a change in value, without the Asset actually. In short: A Bitcoin ETF is the investment in crypto-currencies would simplify greatly.
The question of whether the Securities and Exchange Commission finally declared ready, ETFs allow, is the Community already for a long time. Only in November it was said by VanEck, that all conditions for approval have already been satisfied. So far, you heard more of a marketing authorisation. This may not seem surprising, finally, the catalogue of questions the SEC is quite long. In the case of a decentralized technology, and more or less unregulated market environment, it is not necessarily easy to monitor things such as liquidity, custody, Arbitrage and Manipulation or to prevent.
Bitcoin ETF: security concerns predominate, as before,
In this context, Jay Clayton, expressed concerns to the exchange-traded Fund. According to Bloomberg, he said that Cryptocurrencies are protected against theft and/or manipulated can be:
“What investors expect is that the trading [ … ] underlying the ETF is a useful trade, the free […] of the significant risk of Manipulation. This kind of protection measures does not exist in many of the markets where digital currencies are traded.“
Therefore not to be expected in the near future, Bitcoin, ETFs are approved. Considering the current situation in and around Exchanges, one can understand the concerns of Clayton’s. The debate to Bitfinex and the alleged Manipulation when the Tether does not reflect from a safe Ecosystem. The Causa Envion leaves some verprellte investors.
What you here, however, must not be overlooked: It is the stock exchanges and other intermediaries, which are not (always) safe. The Bitcoin Blockchain is just a crack.