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SEC Receives Yet Another Bitcoin ETF License Request

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Bitcoin ETF
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The Securities Exchange and Commission (SEC) has received yet another request for Bitcoin ETF (Exchange-Traded Fund) license, and this time, the request came from CBOE (Chicago Board Options Exchange) Global Markets. So far, SEC has been pretty clear that it doesn’t plan to allow such licenses. However, the current situation might just be the one that will allow CBOE to get what it wants.

New attempt of an old request

SEC, which serves as the regulator for the US, has received numerous requests for licenses for Bitcoin ETF. However, the regulator has never given a positive answer to these requests. Now, they have received another one, this time from CBOE Global Markets, and this one might just manage to go through.

The reason for this is that SEC has recently stated that Bitcoin and Ethereum are currently not classified as securities. This fact alone might be enough to force SEC to finally issue an ETF license, even though it refused to do so before. If they decide to stay true to their statement, that would mean that CBOE Global Markets’ request is valid, and cryptos might enter a new era, where some of them may become tradable as ETFs.

Just to make this clear – an ETF is a special kind of fund, one which acts as a stock when it comes to trading. Still, it also owns the underlying asset of the regular stock. Basically, the shareholders would not be official owners of the assets, but they would still have the opportunity to receive some of the profits.

Thanks to the new viewpoint on BTC and ETH, CBOE decided to try and send a request to receive a license that would allow them to list and trade BTC shares that would be backed by VanEck and SolidX. VanEck is an active asset manager, while SolidX is a reputable blockchain company.

The situation has changed – but is it different enough?

One interesting thing that the request for VanEck SolidX BTC Trust was already made earlier. Twice, in fact, and both applications for a license were rejected last year, in March. Back then, SEC claimed that the market is completely unregulated, and they just couldn’t allow it with a situation like that. Now, things are different, and the same request came once again.

Each of the shares would be valued at 25 BTC, and SolidX Bitcoin Shares would be the only ones that would be traded. This is what the VanEck SolidX Bitcoin Trust is proposing. The unfortunate thing is that the investors will not receive this as a trading option even if the approval does arrive. At least not until the beginning of 2019.

Also, despite the fact that the situation regarding the crypto market differs greatly from the one from March 2017, this is still a hard time for making such a request. There is a lot of speculation regarding the financial funds, and their apparent move to offer crypto investments that are not exactly in compliance with what the current futures contracts are offering. Because of this, there is a general belief that the institutional investors are about to invest a lot into the crypto market.

Still, the possibility of SEC actually approving this request is not eliminated, and doing so might bring the US one step closer to where many other countries stand when it comes to cryptos. It might even be a step in the right direction for improving on their regulatory measures.

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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.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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