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Many cryptocurrency investors and entrepreneurs have been eagerly awaiting the approval of the US Securities and Exchange Commission for the first exchange-traded bitcoin fund.
A bitcoin ETF would bring more products to Wall Street and give Institutional investors have more direct access to an badet clbad that clearly empowers them in 2019.
Crypto capitalists like Cameron and Tyler Winklevoss even say that they welcome the SEC's scrutiny as well as institutional and federal regulation and oversight.
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But the SEC has rejected all ETF bitcoin applications it has decided so far.
SEC chair Jay Clayton wary of bitcoin reliability
The position of SEC Chairman Jay Clayton on cryptocurrency has not changed over the years. | Source: Stanford Law School / YouTube
Fox Business has an exclusive interview with SEC chairman, the Securities and Exchange Commission, Jay Clayton, in which the president of the SEC defended his position on cryptocurrency.
Clayton says it's not against digital currencies but "worries about the potential for manipulation and wants to make sure investors are protected".
The president of the SEC also said:
"What worries me at the moment is that it can be reasonably shown that the underlying transactions are not generally manipulated, this occurs on reliable sites with good rules and that the guard is something with which we can feel comfortable. "
A "reliable place with good rules", do you say?
This is an excellent description of the Bitcoin blockchain, the underlying hardware infrastructure and software protocols for checking, maintaining, and updating the blockchain.
These qualities are indeed among the main selling points of bitcoin as an alternative form of money.
The fact that the blockchain is a "reliable place with good rules" is what gave digital money people running an open source code project and taming their computer a total market value of tens of billions of dollars. dollars.
These tens of billions of dollars feel comfortable enough with the reliability of the place where many of them are parked and through which others circulate.
And that the rules are good. But not only the rules. The software architecture that governs the application of rules automatically and impartially is dangerously good too.
SEC pursues US affairs abroad
The fact that bitcoins are already reliable and that their rules are simple, understandable and work automatically is the reason why it is such an expensive digital product.
Despite what people call a "crypto winter" since what was the peak bitcoin price peak in December 2017, the demand for bitcoin investment has remained voracious.
That's why so much money is currently pouring into the bitcoin exchange that the world's largest currency cryptocurrency exchange, Binance, paid dividends on its profits last year to the tune of half a billion dollars. dollars to the users of his trading room, the coinage binance.
By dragging their feet on the first bitcoin ETF, the SEC leaves money on the table for Binance's CEO and founder, Changpeng Zhao, to invest in place of a Wall Street broker.
It's less for the US federal government than money on taxes in the domestic financial sector. It's really no different from Alexandria Ocasio-Cortez who hunts Amazon's money in Queens through her own campaign of fear, uncertainty and doubt.
Honestly, many members of the cryptocurrency community are probably thrilled that the SEC is quick to legalize Bitcoin ETFs among other crypto investment products so that cryptocurrency trading developers can continue to cash in all the affairs and that Wall Street is watching them.
Similarities between ETFs and the cryptography boom
There is a remarkable similarity to the explosion of ETFs in the late 1990s and more than 1,600 cryptocurrencies following the introduction of bitcoin in 2009. | Source: Shutterstock
Exchange-traded funds are shares of a fund that owns certain badets, which are used and traded as securities. Many ETFs track an index for which the fund has purchased a proportionate amount of the underlying stocks. Others follow products like oil, cotton or gold that the fund actually holds. Still others are custom baskets of badets.
There is a remarkable similarity with the explosion of ETFs since the end of the 90s and that of more than 2 100 crypto-currencies following the introduction of bitcoin in 2009.
The very first ETF in 1989 followed the evolution of the S & P 500 and was traded on more than one stock exchange until a stock exchange was successfully pursued for the stock be struck off the coast. ETFs made their big breakthrough in January 1993 with Standard & Poor's depository deposits (SPDR).
In December 2014, the market capitalization or total value of all ETF badets in the United States reached $ 2,000 billion for the first time.
Bitcoin derivatives are highly sought after, as are cryptographic ETFs.
Disclaimer: The opinions expressed in the article only commit the author and in no way represent those of NCC.
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