SEC Postpones VanEck Bitcoin ETF Decision Until February

The Securities and Exchange Commission has extended the deadline to make a decision on VanEck’s bitcoin ETF (exchange traded fund) application. Due to the bearish attitude of digital asset market, the delay was largely estimated. The decision is postponed until February 27, 2019.

SEC has declared the delay in an announcement stating, “The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.” Notably, the original proposal was submitted on July 2, 2018.

Before the announcement, VanEck’s director of digital asset strategy, Gabor Gurbacs seemed confident about SEC’s approval of the investment firm’s bitcoin ETF application. He believed that the approval for the same was around the corner.

Gurbacs said that it is reasonably certain that America wants a bitcoin ETF. He added, “We think that we’ve met all market structure obstacles and requirements on pricing, custody, valuation, and safekeeping, so we are cautiously optimistic.”

The SEC has a very strict approach so far, reasonably. Reportedly, in August 2018, the SEC rejected nine applications of Bitcoin ETF, noting the applicants’ inability to demonstrate how they could prevent fraud and market manipulation. Infect, in the past, SEC declined applications from the Winklevoss twins, Tyler and Cameron for bitcoin ETF. Even after the rejection, the Winklevoss twins remain optimistic about the application.

While most crypto space is skeptical about bitcoin ETF, Larry Fink, the CEO of BlackRock has expressed his views in this. He said that the firm would not launch a bitcoin exchange-traded fund until crypto becomes “legitimate.” He stated, “I wouldn’t say never — when it’s legitimate, yes.”

Fink added “It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going.”

Because of its decentralized nature, Fink said that he is concerned about the possibility of scams, money-laundering, and tax evasion, considering the fact that crypto market is anonymous and largely unregulated.


Source
Author: Ruti Vora
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No Bitcoin ETF Before Important Changes to BTC Markets: SEC Chairman

SEC Chairman Jay Clayton has claimed that bitcoin exchanges lack sufficient transparency and monitoring for the market to see approved Bitcoin Exchange Traded Funds (ETFs).

According to CNBC, at the Consensus Invest Conference in New York City recently, Clayton said:

What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation. It’s an issue that needs to be addressed before I would be comfortable.

Clayton primarily feels that a Bitcoin ETF would be too easily manipulated and that not enough safeguards are in place to prevent as much. This goes in line with ongoing actions and investigations by the federal government into Tether and Bitfinex, where they may ultimately allege that Tether was used to manipulate the moving price of Bitcoin as a whole.

Overall, the Bitcoin market is too nascent to have the sort of tools that the SEC would like to see at the disposal of its exchanges in order to approve an ETC, which would essentially be a method of investing in the entire Bitcoin market without holding Bitcoin. After the Winklevii were denied their application for an ETF, they enlisted the help of Nasdaq to use its monitoring software on their own exchange.

In the distant future, there could be several Bitcoin ETFs, but for now there won’t be any. The push toward regulated exchanges and regulated tools within them (the recent resurgence of itBit and the rise of its Paxos Standard being a good indicator in this direction) will need to be much further along before the regulator can safely say that the market isn’t vulnerable to mass manipulation.

The other issue is safe custodians of Bitcoin, which are seen as lacking as well. There are only a few actually regulated custodians on the market. Coinbase’s recent launch of Coinbase Custody is an example, and itBit has always been highly respected for its regulatory approvals. Clayton attributed his further unease to Bitcoin heists past and present:

We’ve seen some thefts around digital assets that make you scratch your head. We care that the assets underlying that ETF have good custody, and that they’re not going to disappear.

In short, Bitcoin markets have a ways to go before the SEC is going to allow anyone to offer a Bitcoin ETF. People are still legally allowed to buy and hold Bitcoin on their own, of course, but the prospect of trading against the whole Bitcoin market or simply adding Bitcoin to one’s portfolio is a ways off. There is still currently the option of the Bitcoin Investment Trust (GBTC), which entitles holders to a small amount of Bitcoin per share.


Source
Author:  P. H. Madore
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World’s First Crypto ETF to Be Listed on Swiss Exchange Next Week

Finally, a Crypto ETF Gets Approval

The last couple of years have seen many failed attempts by cryptocurrency firms to get approval from regulators for Bitcoin-based Exchange Traded Funds (ETFs) especially in the US.

A crypto-based ETF would pave the way for institutional investors to participate in the trading of digital currencies without having to take physical possession of the assets.

SIX Swiss Exchange, Europe’s fourth-biggest exchange with a market capitalization of $1.6 trillion will list the world’s first crypto Exchange Traded Product (ETP) next week.

Amun AG, a cryptocurrency firm has obtained the regulatory approval to list an index fund on a traditional stock exchange. The development was reported by Trustnodes earlier on Saturday.

Hany Rashwan, co-founder and CEO of Amun said:

The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.

Why Switzerland?

Earlier in September Rashwan stated:

After exploring this across 23 different exchanges and territories around the world, we settled on Switzerland.

He further added:

We believe Switzerland to be the best jurisdiction for our base and intend, after launching our initial products on the SIX Swiss Exchange, to both launch additional products as well as dual-list across additional geographies and stock exchanges.
Switzerland has emerged as one of the favorite destinations for blockchain and cryptocurrency firms due to its positive stance towards digital assets.

Fund Structure

The fund includes Bitcoin, XRP, Ethereum, Bitcoin Cash ABS and Litecoin making it the first such fund in the world to include Ripple, BCH and LTC.

The fund tracks the largest cryptocurrencies by market capitalization and accordingly allocates assets. Currently, the fund includes 49% Bitcoin and around 29% Ripple.

Rashwan explained:

We plan on launching an index basket ETP first; it allows investors to simply ‘buy the market’ rather than trade specific crypto assets, though we plan on launching specific trackers for each asset in the future too.
When a customer buys the stock, market makers buy cryptos as per the distribution and send it to a custodian for safe keeping.

Specialist market makers, Jane Street, and Flow Traders are the authorized parties to trade under the ticker of HODL.

ETFs are the most popular products among exchange-traded products as customers can buy the underlying assets without having to bother about securing them.

Earlier crypto related products that have hit the market include Coinshares Bitcoin and ETH trackers and Grayscale’s pink sheet products. However, both these products have different legal structures.

Amun will charge a flat 2.5% annual management fee for providing the service.

Switzerland’s approval of the world’s first crypto ETF is a good development for attracting institutional investors who have so far kept away from the crypto markets due to security risks involved.


Source
Author: KULDEEP KAUL
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How Bakkt Could Lead Bitcoin To Recovery

A well-known crypto trader, technical analyst and all-around figure the crypto space, Alex Kruger has said that Bakkt will lead the recovery of Bitcoin throughout the end of this year to the start of the next.

Kruger went onto say that denial of the Bitcoin exchange-traded fund filling of SolidX, VanEck and Chicago Board Options Exchange will lead to the crash of Bitcoin, possibly leading back down to the $6,000 mark and maybe even the $4,000 level.

Kruger said:

“Possible outlook for BTC: First, bull run on BAAKT & renewed ETF approval narrative early 2019. Second, ETF denied Feb/27, massive crash, goodbye 6k, hello 4k, cleanse all weak hands Lastly, halvening 2020 narrative and re-adjustments lead to [a] sustained bull run for the rest of 2019 & 2020.”

The trading platform, Bakkt has strict regulations on it by its developer’s ICE, the parent company of the New York Stock Exchange and is currently in the process of established an ecosystem that enables both retail traders and institutional investors to invest in the crypto market with sufficient investor protection and through products which are in touch with the regulations in the United States.

Bakkt is expected to launch a cryptocurrency futures market next month. This aims to increase the liquidity of Bitcoin. Prior to this, the US Securities and Exchange Commission rejected nine Bitcoin ETFs on the premise that the Bitcoin futures market is not a sufficient size to handle an ETF.

As said by CCN:

“The entrance of Bakkt into the cryptocurrency exchange market, the involvement of Bitcoin futures market operator CBOE in the VanEck ETF, and the track record of VanEck in filing over 200 successful ETFs with the SEC have led to an increase in anticipation towards the VanEck-SolidX ETF.”

Throughout the next two to three months, Kruger emphasized that renewed enthusiasm towards the market initiated by Bakkt and the VanEck ETF will lead the Bitcoin price surge up higher to major resistance levels.

Since August, Bitcoin failed to break out in the $6,000 area because of its low daily trading volume and relatively low trading activity in the global crypto exchange market.

As of now, the market needs a major catalyst to engage a proper short-term rally and upside movement leading to the two financial institutions being a major factor which might trigger an increase for the price of Bitcoin.


Source
Author: Adrian Barkley 
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BlackRock Waiting for Market ”Legitimacy” to Launch Crypto ETF

The largest asset manager in the world, BlackRock, has said that any plans to launch a cryptocurrency exchange traded fund (ETF) will be put on hold until the market matures.

BlackRock CEO Larry Fink featured on CNBC Thursday, where he shared, “I wouldn’t say never, when it’s legitimate, yes.”

While a number of Bitcoin ETFs have been proposed to the Securities and Exchange Commission for its required approval, the agency has identified a number of issues that have prevented any being launched as of yet. Most notably included is a need to protect investors from activities such as insider trading that it believes the market is particularly susceptible to due to a lack of oversight.

It is this level of independence that the market operates with that Fink sees as a factor stifling its growth into mainstream finance.

“It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going for tax evasion and all of these other issues,” he said, although due to the ideology behind Bitcoin‘s creation, it is very unlikely to become backed by the state.

While Fink was sceptical of the cryptocurrency’s apparent ease of use in illicit activities, he does see a future where a digital currency could be traded as a store of value, something that some investors say is Bitcoin’s primary use case. For now, however, he says that there is no need that he can see for a store of wealth unless it involves ”things you should not be doing”.

Blockchain is something that the CEO does have faith in though, describing BlackRock as a ”huge believer in blockchain”. He cites the most likely area for mass adoption as that which involves laborious paperwork such as mortgage applications and ownership.

Source

Author- Amelia Trapp

Image courtesy of Shutterstock


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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When the next crypto bull run happens, it’s going to be epic

The current overall market cap for the crypto space is a shadow of what it once was. 2018 has tested the patience and skill of everyone involved. Crypto asset prices are down at least 75% across the board for the most part. But strangely enough, institutions and mainstream entities continue to gain interest and involvement. Logically, all this interest should make the next bull run huge (when the market finally turns around).

Significant Mainstream Interest

The Elusive Bitcoin ETF

The approval of a Bitcoin ETF seems to be the most referenced topic in crypto this year. The Securities and Exchange Commision (SEC) appears to be getting closer to a decision on approving a Bitcoin ETF. The SEC has reviewed numerous Bitcoin ETF proposals this year, with no approvals yet.

A possible decision may come in late December for the Van Eck/SolidX ETF, which appears to have the best chance for success.

A Bitcoin ETF would provide a way for institutional (wealthy) players to enter the market and feel that their funds are safe. The market cap all-time high for the cryptocurrency industry has never surpassed $1 trillion, which is not very high, considering global involvement. The crypto space needs more people and money in order to grow. A Bitcoin ETF is a way to increase people’s involvement in crypto, offering an option with regulatory backing (by the SEC).

Ethereum Futures Coming

Everyone in crypto last year remembers the impact Bitcoin futures made on the market, starting last year’s end of year bull run. Money flooded into the crypto space like never before. Bitcoin futures trading on the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) showed significant mainstream interest in the crypto space and resulted in the legitimization of cryptocurrency (to a degree).

This year, the CBOE plans to launch Ethereum futures, possibly before the end of the year. This shows that institutional interest is still growing and that Bitcoin futures were not simply a failed experiment. People still want to become more involved in crypto, even after a tough year.

Nasdaq Crypto Exchange Interest

Earlier this year in late April, Adena Friedman (Nasdaq CEO) made comments expressing interest in possibly becoming a crypto trading platform.

Nasdaq further states they will likely wait for regulation to be sorted out, and for the crypto space to mature. But the point is – the interest is there from one of the most prominent financial entities. A Nasdaq crypto exchange would make the crypto space even more legitimate.

Crypto Hedge Funds

90 crypto hedge funds have launched so far this year, with another thirty estimated before years end. 600 hedge funds total are projected to launch this year (including traditional markets). If 120 of those 600 are crypto hedge funds, that means crypto would comprise 20% of that.

It makes sense that these hedge funds are only launching as the result of interest in the crypto space. Crypto hedge funds also provide another on-ramp to crypto involvement for traditionally-minded people.

IBM’s Food Blockchain

IBM is another giant in the world of traditional markets. They are currently developing a method to track food using blockchain technology. IBM Food Trust as it’s called, is also collaborating with giants such as Nestle, Walmart, and Kroger.

Mainstream business giants see the potential in blockchain and crypto, and are becoming involved. More involvement leads to greater blockchain solutions to world difficulties (such as food origins and tracking).

ICE and the Bakkt Platform

ICE stands for International Exchange. They plan to launch Bitcoin futures trading in November, on a platform/ecosystem called Bakkt.

The big news is that these Bitcoin futures will be settled in actual Bitcoin, as opposed to the current CME and CBOE options that are cash settled. This would require the actual purchase of Bitcoin, causing more demand for Bitcoin holdings.

Bitcoin only has a total supply of 21 million coins. ICE will need to buy large amounts of Bitcoin for trading on the Bakkt platform. If entities like ICE continue to buy Bitcoin, less supply is available for the general public. Less supply could mean greater demand and higher price for Bitcoin.

Ripple, xRapid, And The Banks

Ripple/XRP is a touchy subject in the crypto space. Some people like it, and some see its centralization as a problem that goes against one of cryptocurrencies best qualities – its decentralization. Whether in support of Ripple or against it, Ripple news is still a sign that mainstream use and interest is building.

At its swell conference this year, Ripple announced the launch of xRapid – a product to change global remittance payments. There is said to be a significant amount of interest for xRapid’s potential from financial institutions.

It seems as though most of this information has not significantly impacted crypto asset prices (with the exception of Bitcoin ETF speculation in July). It will be interesting to see what happens when the crypto market finally turns around, and people start seeing the price action relating to such interest.


Source
Author: Benjamin Pirus
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CNBC’s Ran Neuner sums up the reasons why Bitcoin is “about to explode”

In a recent flurry of confident tweets, CBNC’s Cryptotrader Ran Neuner has summarised why investors should be “accumulating” cryptocurrencies as soon as possible.

In a tweet from last week, CNBC’s Cryptotrader Ran Neuner summarised the more positive news that the cryptocurrency industry had seen.

He followed the summary with an optimistic claim that investors should be accumulating cryptocurrency before the prices spike.

Included in his tweet was the report that Ivy League University Yale had invested in a multi-million dollar cryptocurrency fund. The news is remarkable as the financial strategies are headed up by David Swensen, a notable groundbreaker in institutional investment. Neuner also made note of the Winklevoss twins’ cryptocurrency trade exchange Gemini gaining insurance coverage. When the news broke, the Cryptotrader remarked at the time that it was “huge news”.

Also included in Neuner’s optimistic tweet is the news that retail brokerage firm TD Ameritrade started backing a cryptocurrency exchange in a “strategic investment“. Finally, Neuner added that the US Securities and Exchange Commission (SEC) had filed for a rule change for the Bitcoin Exchange-Traded fund decisions (ETF).

With these factors, Neuner has expressed that it is “too obvious” that the cryptocurrency markets are going to swell and he advocates to buy into cryptocurrencies sooner rather than later.

Other cryptocurrency figures have expressed similar optimism, such as Coinbase CEO Brian Armstrong, who thinks that the markets are going to see exponential growth.


Source
Author:  REBECCA LEIGHTON
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36% Of BTC In Circulation Is Lost, Making Bitcoin Technically More Scarce

In new findings by two research firms – Chainalysis and Diar – data has been made available on the reality of the amount of Bitcoin (BTC) actually available in circulation for the regular guy like you and I. According to coinmarketcap.com, the circulating supply of BTC stands at 17,296,587 at the moment of writing this. The findings go on to state that 36% of this amount is ‘lost, likely lost, or unmined’. Doing the math, this then means 6.226 Million BTC is technically unavailable for purchase or trading to even the Bitcoin whales.

The report goes on to state that 22% of the circulating supply is held by speculators, while investors hold a 30% stake in the circulation supply. These values amount to 3.8 Million and 5.189 Million Bitcoin in circulation respectively.

Bitcoin Can Be Declared More Scarce than Many Would Have Thought

Using the above figures, and knowing the hard-cap on the mining of Bitcoin is set at 21 Million, we can declare with some confidence that Bitcoin is technically scarce. This is given the fact that 6.226 Million BTC is technically unavailable. There is also the 3.704 Million BTC that is yet to be mined. We are therefore left with a very small percentage of the digital asset to satisfy the interest of global investors.

Charlie Lee Might Just Be Right

In a tweet back in mid July the founder of Litecoin, Charlie Lee, had urged crypto traders and enthusiasts to first strive at owning 1 BTC before owning any other coin in the crypto verse. His exact words and tweet can be seen below.

There will be at most 21 million bitcoins in existence. There isn’t even enough BTC to go around for EVERY millionaire to own one.

So before you buy any other coin (LTC included), try to own at least 1 BTC first.

Once you have 1 BTC, buy all the shitcoins you want!

Bitcoin’s Future

The fact of the matter is that Bitcoin has attracted the interest of institutional investors from Wall Street such as Bakkt and CBOE who have a pending Bitcoin ETF application at the SEC. This in turn means that looking at the performance of BTC in the last few days, Billionaire investor Michael Novogratz might also have been right when he confidently state that Bitcoin had reached a bottom on the 12th of September and at $6,200.


Source
Author: John P. Njui
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Do NOT dump your BTC, ETH, LTC – 3 Reasons Why – Do Not Panic

A $40 billion drop from the crypto market in a day – Why you shouldn’t still panic?

On Sept. 6, the crypto market lost almost $40 billion from its valuation in under 24 hours, exhibiting one of the steepest decreases in the previous three years.

In mid August, the digital currency advertise dropped to its yearly low at $192 billion, however it took seven days from Aug. 7 to Aug. 14 to record such an extensive drop in valuation.

Preceding Wednesday, during the time of August, Bitcoin demonstrated its largest amount of soundness since June of 2017, as specialists at Diar noted. From Aug. 8 to Aug. 26, the cost of Bitcoin remained moderately stable in the $6,000 area, before starting a late restorative rally over the $7,000 obstruction level.

3 Reasons you should not panic

1. There is not a specific 1 Reason for the decline – Stay safe from FUD

The biggest thing you need to realize while reading online news (“fake news”) is that the price decline is never due to a single reason. From Goldman Sachs delaying its trading desk, delay of Bitcoin ETF, China FUD, and India’s ban – Nothing has full control on the crypto industry, and has nothing to do with the sharp decline of BTC, ETH or any of your crypto.

2. Sharp Decline and Sharp Fall is “Normal” for the Cryptocurrency market

Have a look at the history of Bitcoin. Bitcoin price declined to $45 from $259.34, down 83% in April 2013. From $1163 to $152.40 in January 2015, down 87%.

Think of people who sold Bitcoin at $45.

 

3. Fake Volumes are controlling the market – They want you to Sell your Cryptocurrencies

Alex Kruger, a business analyst and a crypto trader, expressed not long ago that Bithumb, South Korea’s second biggest digital currency trade behind Kakao-run UPbit, said that more than $250 million worth of phony volume was made since Aug. 25.

He clarified that one gathering of traders has been exploiting Bithumb’s 120 percent exchanging charge payback, which can produce about $90,000 in net wage, with a $250 million day by day exchanging volume.

Straightforwardly or in a roundabout way, the strategy used by Bithumb has boosted wash exchanging that knocks up the day by day exchanging volume of the cryptographic money trade. The end result is a day by day net wage of $90,000 for a gathering of brokers and a huge increment in the every day exchanging volume of Bithumb.

In any case, while the strategy prompts a win-win circumstance for the two gatherings, it influences the worldwide digital money trade showcase adversely — as it decreases the genuineness of the universal exchanging volume of cryptocurrencies.

Source
Author: Nadja Eriksson
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Does Bank of America’s Crypto Custody Show Irrelevance of Bitcoin ETFs?

This week, $312 billion Bank of America (BoA) filed a patent to offer crypto custody, targeting large-scale institutional investors and retail traders.

Some experts have said that the efforts of major financial institutions to create institutional products around cryptocurrencies will bolster the adoption of crypto in US markets, which will naturally lead to other publicly tradable instruments such as Bitcoin exchange-traded funds (ETFs).

LIONBIT

Bitcoin ETFs Not Necessary?

The patent of BoA, filed with the US Patent and Trademark Office, described a vault system with which institutions can safely store digital assets like Bitcoin. It read:

“The processor is also able to deposit the quantity of cryptocurrency into a vault connected to a network and determine a total quantity of cryptocurrency deposited into the vault. The processor may also, in response to determining the total quantity of cryptocurrency deposited into the vault exceeds a threshold, facilitate the disconnection of the vault from the network.”

In essence, the system of BoA is similar to the services offered by Xapo, a Hong Kong-based Bitcoin vault company that has been storing over $10 billion in Bitcoin on behalf of institutions since early 2014.

With such a system in place, BoA will be able to provide a platform for its clients and large institutions in the finance sector to allocate large sums of money into the crypto sector without concerns regarding security and regulation.

BoA stated that the primary purpose of its crypto vault system is to allow enterprises to safely store large amounts of digital assets while being able to conduct transactions on a daily basis.

“Enterprises may handle a large number of financial transactions on a daily basis. As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to securely store cryptocurrency,” BoA said.

In an interview with Forbes, Jonathan Hamel of Acadamie Bitcoin in Montreal explained that the introduction of institutional products around crypto like the BoA custody solution and Bakkt, a joint venture created by Microsoft, Starbucks, and the New York Stock Exchange, will significantly improve the physical over-the-counter (OTC) and institutional infrastructure.

TIP

In the near future, Hamel said that institutions will be able to comfortably invest through existing custodian solutions that are sufficient to bring in billions of dollars in new capital into the space.

As the OTC and institutional market improves, Hamel noted that ETFs and other publicly tradable instruments will inevitably arrive in US markets, emphasizing that investors do not have to be concerned about the approval of ETFs just yet.

“I don’t think (the rejections) are that important. The ‘physical’ over-the-counter/institutional bitcoin infrastructure is only getting started. The development of financial vehicles backed by bitcoin is inevitable. It’s not if, it’s when,” Hamel stated.

Institutional Market is Improving

Currently, the vast majority of investors are highly anticipating the debut of the first Bitcoin ETF because most believe that an ETF would bring in substantial capital into the asset class.

But, officials at the US Securities and Exchange Commission (SEC) have made it clear that there exists certain requirements ETF operators will have to meet and the first Bitcoin ETF is unlikely to emerge in US markets until early 2019.

In the meantime, as Hamel said, investors are still able to invest in the market through custodian solutions and the institutional market improves, more institutions will be willing to consider cryptocurrencies as a legitimate market to invest in as an alternative.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author: Joseph Young
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