Bitcoin ETF was opposed by 84%. What did the opponents say?

This article is from CCN, author: Samantha Chang, translator: Planet Daily Chaliang; Editor: Lu Xiaoming

On March 18, according to CCN reports, the U.S. Securities and Exchange Commission issued a consultation on the application of Bitcoin ETFs in February 2019. Recently, the Commission received seven responses, six of which expressed an urgent hope that the Commission would cancel the application of Bitcoin ETFs. The denial rate reached 84%. The denials mostly focused on issues of excessive volatility and market manipulation. Discussions about whether to implement a Bitcoin ETF may drag on until the fourth quarter of 2019.

Let’s take a look at the reasons why several of these commentators reject/support the launch of a Bitcoin ETF.

Opponent Dina Pinto: Bitcoin is highly volatile and its price can easily be manipulated

Dina Pinto wrote in response: "In my opinion, Bitcoin does not have a solid foundation to support the launch of an ETF so far." It is unstable, operated by a very small number of people, and has no real use cases in real life. ”

He said: “I think there are going to be a lot of people who will be hurt financially and in other ways by the SEC launching a Bitcoin ETF in the future. So I think this suggestion should be rejected. ”

Opponent D. Darnwell: Reject Bitcoin ETF without hesitation

“Here, I particularly want to express my dissatisfaction with the Bitcoin ETF and request that the SEC should take longer to wait and see the Bitcoin ETF, taking into account all the positive and negative impacts brought by Bitcoin, to see whether Bitcoin is worthy of becoming a financial product. ”

D. Darnwell finally said that the real value is expected to become a "game changer". What breaks the existing pattern is the blockchain technology, not the cryptocurrency. D. Darnwell believes that the development of blockchain technology does not need a cryptocurrency similar to a financial instrument to promote it.

“So I would reject a Bitcoin ETF without hesitation. ”

Supporter Sami dos Santos: Bitcoin itself is transformative

Sami dos Santos believes that "the SEC's argument is that it has not approved a Bitcoin ETF because Bitcoin prices are susceptible to manipulation, and claims that this move is to protect investors. I think this argument is contradictory, because without investment funds, investors will turn to digital currency exchanges that are still outside regulation to buy Bitcoin. In this way, investors are not protected by law, and the funds (virtual currencies) they place in the exchange will become unsafe." ”

VanEck already provides coverage against possible losses from such investments, and it's clear that investors will show a lot of interest in investing in ETF funds. Therefore, I see no reason not to approve the VanEck ETF and the Bitcoin ETF. ”

[Odaily Planet Daily Note: VanEck is an investment management company headquartered in New York with decades of experience in the traditional financial field. 】

In September 2018, the VanEck SolidX bitcoin Trust’s proposal for a Bitcoin ETF received more than 1,400 comment letters, 99% of which were positive. But that enthusiasm has since faded, presumably affected by the current crypto winter.

According to CCN reports on October 25, representatives of SolidX, VanEck and the Chicago Board Options Exchange (CBOE) mentioned 5 reasons why the SEC should approve VanEck&SolidX Bitcoin ETF application in 2019 during a meeting with U.S. Securities and Exchange Commission (SEC) Commissioner Elad L. Roisman.

In addition to VanEck, SolidX and CBOE have also jointly proposed Bitcoin ETFs. The company has proposed more than 100 ETFs in total. During the meeting, the company laid out key points that the SEC should consider in approving its Bitcoin ETF:

1. The Bitcoin derivatives market is currently subject to strict regulation

2. Related markets, such as CBOE, Bitcoin futures, and over-the-counter trading desks, are also regulated

3. Concerns about price manipulation have been alleviated

4. CBOE’s rules are designed to monitor potential trust stock manipulation

5. Promote investor protection

However, SEC Chairman Jay Clayton is concerned that the crypto market is being manipulated.

On March 14, Jay Clayton emphasized that he is neither for nor against cryptocurrencies, but that he has serious concerns about crypto market manipulation. However, he said, "A Bitcoin ETF will certainly comply with our regulations." ”

Clayton also expressed optimism that cryptocurrency and blockchain technology have great development prospects in the future.

“My concern is whether it can be reasonably demonstrated that the underlying transactions in the crypto market are generally not manipulated and that transactions occur in reliable venues with good rules and within the scope of regulation. ”

Source: Odaily Planet Daily