The new announcement by the US SEC (Securities and Exchange Commission) states that the decision regarding the potential approval of several applications for a Bitcoin ETF (exchange-traded funds) is once again postponed. This time, the SEC declared that the decision will be made by February 27th, 2019.
The application requesting that VanExk SolidX BTC fund get s listed on Cboe BZx Exchange that was published on July 2nd needs to be given order by the commission within 180 days. Originally, the deadline for doing so was December 29th. However, the SEC decided to extend the period for another 60 days, effectively moving it to February 27th.
The SEC stated that designating a longer period for making a decision was found appropriate, as more time is needed in order to properly consider the rule change.
Cryptocurrencies need a sufficient monitoring mechanism, claims SEC chairman
Recent reports claim that the SEC received over 1,600 comments after requesting the public opinion regarding the ETF applications issue. In the past, the SEC rejected many such applications, some of which were even submitted by SolidX itself. In addition, they also rejected the applications submitted by Gemini, the exchange owned by Winklevoss twins. Brothers were attempting to gain ETF approval ever since 2013, although to no avail.
Other applications were also submitted by Direxion, ProShares, as well as GraniteShares. The SEC rejected them all, stating that there is a reason to believe that the funds would be vulnerable and that manipulation is possible. Only one day after making the decision, however, the SEC announced that these applications will be reviewed after all.
Afterward, only a week ago, Jay Clayton who serves as chairman of the SEC, stated that the crypto market needs to develop a monitoring mechanism similar to that of traditional markets. This is necessary as the ETFs are to be based on the value of cryptocurrencies themselves. He also added that there is a need for improving the cryptocurrency custody services. This would result in a reduced number of cryptocurrency-related thefts, which are common on various exchanges.
SolidX and VanEck met with the SEC, and during the meeting, they stated that there are sufficient methods of monitoring the relevant cryptocurrency futures markets. Because of the nature of blockchain itself, where data regarding the trades is decentralized, there is no greater risk of Bitcoin having its price manipulated. In fact, Bitcoin’s susceptibility to manipulation is as low as that of commodities for other products that can be traded on exchanges.
For real-time trade alerts and a breakdown of the crypto markets, sign up for Elite membership!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
AAX Crypto Exchange Announces Massive Growth Numbers in August
As the crypto market continues to surge, new traders continue to enter the market on a daily basis. One of the first questions that new traders have is where should they trade crypto. While there are countless options for buying and selling digital assets, traders need to exercise extreme caution and perform due diligence to avoid scam exchanges as well as places that have limited or no volume. While the main platforms such as Coinbase, Binance, and Bittrex will always have significant volume, their fees are known to be on the expensive side. AAX, a next-generation cryptocurrency exchange with the lowest futures fees in the world, represents a compelling alternative that traders should consider.
A few of the most important issues to consider when deciding whether to use an exchange are the number of users and the volume. On August 7, AAX announced that in a little over two weeks, the exchange doubled its user base bringing the grand total of registered users to over 200,000. At this rate, AAX may surpass the million mark later this year which would be an incredible achievement and is most certainly due to a variety of factors including extremely low fees and revolutionary technology.
When AAX decided to build its platform, it set out to meet the demands of both institutional and retail investors. In order to achieve that goal, the exchange operates at the highest possible…
3 Reasons Why WISE Token Could Be a Massive Winner in 2021
After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017. Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading. While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.
Cryptocurrency traders have spent the past several years searching far and wide for the next big winner. While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi. This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum. The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.
One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Chainlink has seen its token price increase by more than 300% year-to-date. Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present. Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…
The Pros And Cons Of Cryptocurrency
Many facets of our lives are now digitized––money is no exception.
Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card?
Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this.
But what about cryptocurrency?
You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind.
Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level.
These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.
Different From Traditional Banking Transactions
One thing people hate about traditional banks is the fact that they can…