Not The Season For Crypto ETFs (Yet)

It’s still not time for cryptocurrency Exchange Traded Funds according to the Securities and Exchange Commission.

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Yesterday, it denied 9 applications to operate Bitcoin ETFs giving as their reason (as they reasoned when they turned down the Winklevoss Twins recently): “there aren’t enough protections against fraud and market manipulations of the underlying products” and, for one ETF, it said that ‘the market for the underlying assets wasn’t of “sufficient” size to ensure that prices weren’t being manipulated on other exchanges.”

The SEC went out of its way to say that the rejection was not a swipe at the blockchain technology, just that the market is still not safe enough for mom and pop investors.

https://www.wsj.com/articles/sec-rejects-nine-proposed-bitcoin-exchange-traded-funds-1534978380

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Jobs, Legislative Intent, review, SEC, technology, Uncategorized, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

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