And again it happened: The US securities regulator, the SEC, has issued a nine-Bitcoin-ETF-requests a cancellation. The great flood of fresh capital will remain off for the time being, an index Fund, induced the Bitcoin rally will have to wait at least until 30. September. Finally, another Bitcoin ETF application with greater prospects of success, because, among other things, retail investors are excluded, in the Pipeline or on the writing of the US tables of authority and waits for its approval. Proponents of the regulated funds may, therefore, still to come in a timely manner to your regulated Bitcoin Investment. As the decision of the SEC to interpret, and why the Cancellations are relaxed may be included in the Following outlines.
The failed applications for authorisation to leave the crypto market is relatively cold. The decline of Bitcoin & co. in relation to the course of the last weeks plunge rather harmless. There was, however, already in the run-up to major doubts as to whether the applications would go through. In addition, the final rejection seemed not to be so final. Because barely a day later, the SEC announced, to check the applications again. However, the question is not if, but when, the SEC approved crypto-ETFs. From the financial market history of recent decades suggests that each asset is mapped over the short or long term financial products. The greed has set so far. No matter whether hedge funds from the Offshore financial Paradise-jurisdiction of Cayman Islands or Asset-Backed Securities that led to the mortgage bubble and subsequent financial crisis in 2008. The creativity of the financial engineers and the financial market lawyers should not be underestimated.
No end in sight
The flood of requests for crypto-financial products will not diminish. Especially since there are already some approved and regulated financial products. It is perfectly normal that, initially, less heavily regulated financial products are authorised with lower hurdles, until you arrive at the end in the king class of the ETF. There are already Bitcoin Futures, as well as alternative investment funds, Exchange Traded Notes or other certificate structures, the Bitcoin map. These successful examples show that some of the regulatory hurdles have been taken and that it is very well possible to obtain a permit from the authority for cryptographic products.
The uncertainty of the authorities
It is no secret that the SEC, like virtually every other authority in the world, a decision for as long as possible to delay would like. Too great was the fear of having to justify a later time, when it comes to errors and legal disputes. Just because ETFs are regulated, not Bitcoin for a long time. Bitcoin and the crypto market from the point of view of the authorities is incalculable. The Mix of regulated and unregulated the decision-insecure-makers in the authorities. So the question comes up again and again, whether there is a sufficient legal framework for Bitcoin Fund.
The motto is: he Who makes nothing, makes no mistakes. This helps to explain why the SEC extended the majority of applications, always with the maximum decision period. A decision had to be made, in most cases, only if no extension of the deadline was possible.
As in the current case of the Rejection, the decision-makers to the risk of market manipulation. Without adequate protection against fraud, as the SEC may permit, not a Fund. In the name of consumer protection, the authority granted, then the well-known judgment of rejection. Not always understandable, but still a little surprising for a Supervisory authority.
Bitcoin & co. have developed in the last few years, even without ETFs magnificently. So many investors are taken in by the thought that Bitcoin ETFs would cause the Bitcoin price to skyrocket, you should keep quiet. The impact of strong inflows does not, per se, are direct good for the crypto-Ecosystem – just think of the scaling problem, and Congestion of the cryptographic service provider during the Kryptohypes the end of 2017 – the courses inevitably toward the sky. In the same way as in the case of Bitcoin-Futures Long and Short structures in the case of ETFs, ergo ETFs can build, in principle, also positions against Bitcoin and the courses down beat.
Instead of waiting on securities identification numbers, it may be worthwhile to take a look at the existing possibilities of the crypto-Economy. The beauty of it: unlike ETFs you need for the Bitcoin custody to pay on Wallets, no Deposit fees.