Think Wall Street Institutional Investors Aren't Looking At Bitcoin? Think Again
This has been a tough year so far for cryptocurrency. Bitcoin (BTC) has been wavering around $7,000 or lower and its value continues to fluctuate.
The tide may certainly change though, especially given the recent announcement by the owner of the New York Stock Exchange (NYSE), which is that the exchange has partnered with Microsoft, BCG, and Starbucks, and others, to launch a market. The market caters to bitcoin futures contracts to improve the viability of bitcoin and other cryptocurrencies as mainstream financial assets. The partnership will form a company called Bakkt, which is comprised of:
- Intercontinental Exchange (ICE) – owners of NYSE
- BCG Global Managemnet Consulting
- M12 Venture Capital Arm of Microsoft
- Fortress Investment Group
- Horizons Ventures
- Alan Howard Hedge Fund
- Pantera Capital
- Protocol Ventures
- Susquehanna International Group, LLP
The project has been in the work for over a year and it will certainly be interesting to see how it continues to develop.
SEC Receives Public Comment in Crypto Related ETF Proposals
The Securities and Exchange Commission is reviewing several cryptocurrency-related ETF proposals and in the process, it is accepting public comment. The proposals under review at the SEC were filed by Boston-based ETF provider, Direxion Investments at the start of 2018. One of the proposals is connected to BTC price, while the other four are connected to price variation.
One commentator, under the potential pseudonym John Galt, a character in the famous book Atlas Shrugged, wrote, “The US needs a Store of Value alternative to Gold, and this is what the people want.”
It is natural to wonder why one would comment under the name John Galt. In Atlas Shrugged, Galt represents the rejection of government intervention in business. His approach promotes society’s members to reduce their level of work in response to increases in marginal tax, tax deduction limits, and the use of tax revenue for immoral purpose. Therefore, it seems that the commentator is stating more about his view without saying much at all.
Concerning the decision related to the five cryptocurrency ETFs filed by Direxion, the SEC released a statement that it is deferring the decision until September, which is within its 180-day window requirement to issue a decision. Ultimately, the SEC needs to decide by September 21, 2018.