Could The VanECK Bitcoin ETF Proposal Prioritize All The Manipulation Concerns Raised By The SEC?

Could The VanECK Bitcoin ETF Proposal Address All The Concerns Raised By The SEC?

The United States Securities and Exchange Commission (SEC) could soon approve the first Bitcoin Exchange-Traded Fund (ETF). However, this is something that has been debated and discussed in the past. The regulatory agency has been very clear about the requirements it needs from the companies presenting these ETFs.

During this week, the SEC Chairman Jay Clayton said that the SEC needs to have a market that is completely free of manipulation. He said that at a conference in New York.

On the matter, Clayton commented:

“What investors expect is that the trading in that commodity that’s underlying the ETF is trading that makes sense, is free from the risk or significant risk of manipulation. Those kinds of safeguards don’t exist in many of the markets where digital currencies trade.”

At the moment, most of the crypto exchanges did not make enough progress to eliminate the risk of manipulation, which is making an approval of a Bitcoin ETF highly unlikely. Back in July, the Bitcoin ETF filing presented by the Winklevoss twins was rejected by the regulatory agency in the United States. The SEC mentioned that the Gemini exchange, which is already one of the most regulated exchanges in the crypto world, was vulnerable to manipulation.

This is why the SEC believes that the current market infrastructure is not prepared for handling a Bitcoin ETF yet. The same happened with a futures-based ETF that was rejected by the SEC later in August. The commission considered that the futures market does not have a significant size to support the ETF.

In February 2019, the SEC would have to take a decision about a Bitcoin ETF filing that was presented by VanEck. However, the proposal is different from the one made by other companies because the price of Bitcoin is based on over-the-counter (OTC) market using a specific index.

Gabor Gurbacs, Digital Asset Director at VanEck, said that OTC trading desks tend to be more robust than exchanges, which can also increase the possibilities for the ETF to be approved. He mentioned that OTC trading desks are also more efficient and liquid.

At the moment of writing, it is not clear whether the SEC will be approving a Bitcoin ETF and whether it will be doing it in February or later in 2019. However, the cryptocurrency market is moving in this direction. Several companies are working with the intention of creating the necessary infrastructure for receiving new investments from institutional and traditional investors.

An ETF could also help the market recover part of the value they lost during this year. It is currently time to wait for a decision from the SEC.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,273FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today