The US Securities and Exchange Commission (SEC) reportedly informed two bitcoin exchange-traded fund (ETF) aspirants their cryptocurrency products lack enough liquidity and are problematic in discovering valuation.
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Two Firms Withdraw Bitcoin ETF Proposals from SEC
Wall Street’s main regulatory body, the US Securities and Exchange Commission (SEC), sent chills down bitcoin ETF hopefuls, as the regulator reportedly expressed concerns about the potential of bitcoin futures bundled together as a tradable stock, according to reports.
The regulator is gatekeeper to listings on the New York Stock Exchange (NYSE), and has received somewhere near a dozen applications for bitcoin ETFs. Worries about “valuation” and “liquidity” were cited in withdrawal filings, according to reports. Withdrawals came Monday, 8 January 2018, just days after a headline-making ETF product was formally proposed.
Direxion Asset Management’s asked no fewer than five ETFs be traded on the NYSE Arca, and those funds substantially increase risk exposure. In late December of last year, Chicago Board Options Exchange (Cboe) formally petitioned the regulator too in hopes of having half a dozen ETFs traded on the Bats BZX exchange.
Indeed with the advent of Cboe futures contract markets being made (along with crosstown rival CME), there was widespread optimism over the SEC policy. The agency wished to ensure viability of a financial product was first in place before going ahead on bitcoin ETFs. That standard seemed to be met by the two Chicago exchanges. By mid December, Read More Here