Bitwise Set to File Another Application for Bitcoin ETF Following SEC Rejection

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Bitwise Set to File Another Application for Bitcoin ETF Following SEC Rejection
The United States Securities and Exchange Commission (SEC), has published an official document describing its ruling on the application for a Bitcoin exchange-traded fund (ETF), filed by Bitwise Asset Management and NYSE Arca.
Bitwise Set to File Another Application for Bitcoin ETF Following SEC Rejection

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Source: CoinSpeaker

We’re Close to Bitcoin ETF Approval, Says Optimistic Bitwise Executive

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We’re Close to Bitcoin ETF Approval, Says Optimistic Bitwise Executive
Ahead of the SEC’s Bitcoin ETF deadline, Bitwise’s director is optimistic for a positive ruling. According to him, the market has grown significantly, making it stable enough to allay the SEC’s fears.
We’re Close to Bitcoin ETF Approval, Says Optimistic Bitwise Executive

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Source: CoinSpeaker

Bitcoin ETF ensures secure access to BTC for regular investors: Bitwise Exec

The Bitcoin ETF proposal and the question of whether it will get the SEC’s approval has been one of the key talking points of 2019. Several Bitcoin ETF proposals have been submitted to the SEC by institutions such as VanECK Securities, SolidX Management and Bitwise, but none of them have received any positive response, as […]
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Bitcoin [BTC] ETF: No More Room for Delays, SEC to Announce Decision This Week

The financial world offers a plethora of derivatives that can be issued upon an asset. Bitcoin [BTC] derivatives that made most of the news this year was the Futures contract. Along with the introduction of the much-awaited launch of Bakkt, the trading volume of regulated Bitcoin futures is more significant than $200 million.
Moreover, Van Eck and SolidX launched another financial instrument of investment in a trust fund. The firm marketed the product as a ‘Limited ETF’ – only available to institutional investors. The SEC still hasn’t approved on the ETF front. This remains to be a critical issue that will enable the inclusion of Bitcoin in investment portfolios.
ETF Deadline This Week
The deadline for the decision on the Bitwise Bitcoin ETF is 13th October, this Sunday. The government agency can make the announcement anytime this week. According to the SEC laws, a delay is not possible this time around – it’s either going to be a yes or no. Matt Hougan from Bitwise Investments told the media,
“We’re closer than we’ve ever been before to getting a bitcoin ETF approved,”
The SEC had raised an abundance of concerns which fell under price discovery and market manipulation, and its high volatility. The price discovery of Bitcoin has significantly improved in the last 18 months with the improvements in Bitcoin custody and futures market. The volatility has also developed over the years. Hence, it will be interesting to see how the SEC views the market for retail investors now.
Also Read: Crypto Regulations: SEC Finds Itself in a Paradox in the Senate Meeting
Moreover, the World Federation of Exchanges, which includes CME, Nasdaq, and even NYSE, has further requested the FCA to reconsider its proposal for an outright ban of derivative for retail customers. Moreover, the federation has laid out recommendations for the exchanges for investor protection in general.
Hence, the progress made during spring and summer this year has primed the crypto markets for an official entry into the financial world. The question remains as to how the regulators view pension, insurance, and other wealth fund managers investing their money in Bitcoin.
Also Read: Will 2019 See Another Bitcoin ETF – Analysts Debate
Furthermore, in case of rejection, which is likely, the market expects to hear from the SEC on remaining concerns. Hougan noted that in such a case,
“They’ll provide detailed guidance, at least we expect them to provide detailed guidance on which questions they think have been successfully answered, which questions if any remain. So we’ll know how close we’re to the goal line if we’re all the way in or still a few yards outside.”
Do you think the market is primed for an ETF approval? Please share your views with us. 
The post Bitcoin [BTC] ETF: No More Room for Delays, SEC to Announce Decision This Week appeared first on Coingape.
Source: CoinGape

Bitwise submits new 31-page proposal to allay SEC’s concerns over its Bitcoin ETF proposal

Bitwise, the cryptocurrency management firm, has come up with a new presentation to persuade the SEC to approve the much prolonged Bitcoin ETF. The digital asset management firm met with three SEC Commissioners – Hester Peirce, Robert Jackson Jr., and Elad Roisman for the same. The 31-page presentation was shared by the SEC as part […]
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Source: AMB Crypto

VanEck’s Limited Bitcoin ETF Loses Steam, Manages to Issue Only 4 Bitcoins

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VanEck’s Limited Bitcoin ETF Loses Steam, Manages to Issue Only 4 Bitcoins
The VanEck’s Limited Bitcoin ETF has proved unimpressive so far with only 4 BTC tokens issued. Some crypto experts have also slammed VanEck for its marketing gimmick saying the product is nowhere close to real ETF.
VanEck’s Limited Bitcoin ETF Loses Steam, Manages to Issue Only 4 Bitcoins

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Source: CoinSpeaker

Are Companies Over-Marketing Bitcoin ETFs? VanEck’s ETF Attracts Only 4 BTC In First Three Days

The VanEck SolidX ‘limited’ Bitcoin ETF is now three days old, however, it seems it is having trouble gaining attention from investors. As of now, only assets worth 4 BTC have been put into the fund so far.
Lack of Interest Witnessed in Institutional Investors
Although the Bitcoin product has been live for three days, institutional investors seem to lack an interest in VanEck’s SolidX limited ETF. The fund has only managed to issue only a basket of assets, with mere 4 BTC in it, worth approximately $41,400.
 A week ago, it was reported that VanEck Securities and SolidX Management would be releasing a ‘limited’ Bitcoin ETF despite not receiving the green light from the SEC. This modified ETF is being offered through an SEC exemption, only available to hedge funds and banks. 
While it is still in nascent stages, the crypto community is of the belief that Bitcoin ETF will be a key to all solutions in the crypto arena. 
The “limited” ETF was expected to gain approval from the SEC. However, considering the funds’ abysmal assets, the future looks bleak. The low numbers can be attributed to strict rules levied by SEC. This invariably limits the participation to a number of accredited investors from a smaller pool of the financial world.
The Stand Of SEC On Bitcoin Custody Solutions Still Unclear
Within just a week post its launch, the limited Bitcoin ETF has been a part of several controversies. Recently, leading Lawyer, Jake Chervinsky compared it to Grayscale Bitcoin Trust. Further, stating that it was a cute market strategy and calling it a “full” ETF was misleading. 
Earlier in the day today, SEC chairman Jay Clayton, told CNBC in an interview that, “there is still work to be done”, when asked about the possibility of a Bitcoin ETF in the near future.

Are we any closer to seeing a Bitcoin ETF some day? SEC Chairman Jay Clayton to @CNBC: "yes, but there's work left to be done" @SEC_News @bobpisani @kellycnbc @CNBCTheExchange #bitcoin #crypto pic.twitter.com/iJP3nn9XHc
— The Exchange (@CNBCTheExchange) September 9, 2019

While the limited ETF is certainly not the end goal, it is just a soft start and would eventually lead to a full Bitcoin ETF. 
Is too much being expected out of VanEck SolidX “Limited” Bitcoin ETF, or is it just to build pressure on SEC, to roll out a full Bitcoin ETF? Let us know what you think?
 
The post Are Companies Over-Marketing Bitcoin ETFs? VanEck’s ETF Attracts Only 4 BTC In First Three Days appeared first on Coingape.
Source: CoinGape

There is Only a 7% Chance that Bitcoin Price Will Hit $20,000 in 2019

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There is Only a 7% Chance that Bitcoin Price Will Hit $20,000 in 2019
An analyst has shown data that seems to belittle all forecasts that currently see Bitcoin hitting $20k in 2019. According to the data, there is a 93% chance that Bitcoin will stay below its all-time high.
There is Only a 7% Chance that Bitcoin Price Will Hit $20,000 in 2019

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Source: CoinSpeaker

SEC Accepting Public Comments to Decide the Future of ETF Backed by Bitcoin and T-Bills

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SEC Accepting Public Comments to Decide the Future of ETF Backed by Bitcoin and T-Bills
The proposed rule change will allow Wilshire Phoenix Fund to list shares of ETF on NYSE Arca. SEC has declared that the public can comment on the aforementioned matter within 21 days’ time period.
SEC Accepting Public Comments to Decide the Future of ETF Backed by Bitcoin and T-Bills

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Source: CoinSpeaker

SEC’s Hester Peirce urges crypto-community to ‘walk the regulators through the technology’

The uncertain regulatory climate with respect to the cryptocurrency ecosystem has led to detrimental consequences, with the geofencing of crypto-tokens by Poloniex being a recent example. The Commissioner of the United States Securities and Exchange Commission, Hester Peirce, had previously expressed her fears regarding the delay of the same.
While speaking to Naomi Brockwell in an interview held on the sidelines of Consensus 2019, Peirce acknowledged that “there was room for the regulators to do more” in the space. She had said,
“We need people to come in and hold our hands a little bit – and walk us through the technology”
The Commissioner stated that people have come to rely too heavily on what they perceive as an “SEC seal of approval”. She further urged users in the space to make disclosures for the things they want to trade, keeping in mind basic compliance.
Famously referred to as “crypto-mom” for being the dissenting voice against SEC’s decision to reject an exchange-traded fund [ETF] offering exposure to Bitcoin, she further noted that one of the “best things” that could be done was to try and “encourage skepticism”.
According to Peirce, the recently released SEC guidance was a little overwhelming for people in comprehending securities law. She stated,
“It threw lots of factors onto the paper and then it said to people, all right, go figure out how those should be weighted and that’s a concern because people you know that in some ways generates more confusion about how to weight these things how to figure it out, so I think we’re not thinking always that this is a space where you’ve got a lot of people, who haven’t thought about securities laws and now this is their first interaction with the securities laws and it’s a little overwhelming.”
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Source: AMB Crypto

Bitcoin Price May Hit $30,000 in 2019, Fund Manager Explains Why

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Bitcoin Price May Hit $30,000 in 2019, Fund Manager Explains Why
Jehan Chu, co-founder of Kenetic Capital, predicts that Bitcoin price will reach the $30,000 mark by the end of the year.
Bitcoin Price May Hit $30,000 in 2019, Fund Manager Explains Why

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Source: CoinSpeaker

Bitwise Presents Bitcoin [BTC] Market ‘Myth-Buster’ Statistical Report to the SEC

Bitwise Asset Management is one of the ETF applicants in the US, that has worked primarily on due diligence this year. In March, it released a report highlighting a grim truth about the cryptocurrency markets: the ‘fake reported volume on Exchanges.’ However, it bore a silver lining to it, as it was revealed that past the fake volume cloud exists a perfectly fine ‘free-market’ of cryptocurrencies.
Bitwise has submitted another report to the SEC (Securities Exchange Commission) suggesting that the trading on ‘selected’ Cryptocurrency Exchanges is small but efficient enough to build an ETF on it.
Also Read: Decoding Bitwise Report – Wash Trading and the “Real 10” Volumes: Expert Opinion
 
Global Presence of Trading of Cryptocurrency Exchanges (Research)
Ten Exchanges with Real Volume
Consistent with its previous report, the new research pointed out that the reported volume on only ten Exchanges was published correctly. All the other Exchanges were reporting fake ‘non-economic’ data to gain ranking on CoinMarketCap. This attracts more customers, and the management charges hefty fees for listing as well. Nevertheless, ‘wash trading’ is non-economic; i.e., it does not affect the price of the asset. 
Arbitrage Trading Between ‘Ten’ Exchanges Mentioned in Bitwise Report
Moreover, the spot Exchanges mentioned in the report are also running a closely watched price environment in which manipulation is not possible because of Bitcoin’s digital nature which provides an opportunity of immediate action which brings the markets to parity again.
“Arbitrage On Exchanges Has Improved Significantly” It also included the fact that, “The fungibility and transportability of bitcoin create a nearly perfect environment for arbitrage between different trading venues.”
Bitcoin Futures Trading
The report also highlighted that Bitcoin Futures Trading market is significant compared to the actual spot trading volume on Exchanges. Moreover, the futures price in most esteemed markets draws their index from these trusted ten Exchanges mentioned above. Furthermore, compared to the actual spot trading volume, the trading volume of Bitcoin Futures is around 30% of the spot volume.
“The CME Futures Price Is Derived From Exchanges That Contribute To The Bitwise NAV Methodology”
Institutional Exchanges that Derive Price from Spot Exchanges
The Exchanges include Bitstamp, Coinbase, itBit, and Kraken. Moreover, it went to establish a global relevance of the price on Exchanges and regulated markets outside the US. Amun AG is a Swiss-based firm that has released four crypto-based Exchange Traded Product on SIX Exchange.
…Every regulated crypto product that has launched –whether in the U.S. or Europe – has drawn prices either entirely from or, in the case of XBT Provider, almost entirely from a subset of the 10 exchanges highlighted in this presentation as “real.”
Bitwise ETF Proposal
The findings above statistical models suggest that the Bitcoin market is healthier and more mature than the common perception. Moreover, according to the SEC guidelines, a small volume doesn’t concern the approval as long as it is secure. The two assurances that SEC needs for ETF approval are:
1) Unique Resistance: That the bitcoin market is uniquely resistant to market manipulation and fraudulent activity
2) Surveillance Sharing: That the listing exchange has entered into a surveillance sharing
agreement with a regulated market of significant size
Also Read: SEC is not Against Crypto ETF – Bitwise Explains
According to this report, Bitcoin markets satisfy both these conditions. Furthermore, the Bitwise ETF will derive its price from the ‘ten’ Exchanges itself.
“We draw prices from 10 crypto exchanges representing substantially all of the trading volume in the spot bitcoin market.”
Last but not least, the report also cited that contrary to popular belief, the ETF would not have as tremendous an impact on the market. While the Bitwise acknowledged the fact that the market could be overwhelmed with the launch of an ETF, it will be absorbed soon by the market.
“Over the course of the year, a spot market that is trading $273 million per day can easily absorb $3 billion in total inflows… Today, those platforms [ETF trading Platforms] have detailed due diligence and approval processes that smooth out asset growth.”
Do you believe that Bitwise has built a strong case for ETF approval the next time around? Please share your views with us. 
The post Bitwise Presents Bitcoin [BTC] Market ‘Myth-Buster’ Statistical Report to the SEC appeared first on Coingape.
Source: CoinGape

Strong Barriers at $8,500, But Bitcoin (BTC) Bulls Are Steadfast

Bitcoin (BTC) stable and ranging
The US SEC delays VanEck Bitcoin ETF decision date by another three months

Bulls are resilience, and after shaking off the $1,000 drop of May 19, Bitcoin is stable and ranging. Even so, any break and close above $8,500 will draw buyers aiming at $10k or higher confirming bulls of early April.
Bitcoin Price Analysis
Fundamentals
That the dreaded crypto winter is finally over, is true. Analysts say fundamental and technical factors are aligning and that will likely lift Bitcoin prices to new highs as prices breach and close above the minor resistance at $8,500.
At spot rates, Bitcoin prices are in range mode. However, it is the reaction of the market to the news that the US SEC will delay their decision on the VanEck Bitcoin ETF by three months to August 2019.
Although they didn’t expound as to why they are taking their time, observers believe it has to do with their requirements of stringent surveillance tools to prevent fraud and other manipulative acts. It is until there is fulfillment of these conditions that the US SEC would be “comfortable” with a crypto investment vehicle where the interest of the investor is top priority, and there is transparency.
Candlestick Arrangements

As it is, and as aforementioned, BTC/USD is in range mode inside May 19 high low–which is bullish. Besides, the failure of prices to drop hours after the SEC delay of VanEck Bitcoin ETF proposal is bullish confirming the strong uptrend two days after bulls bounced back shaking the Bitstamp triggered a liquidation of May 18.
Even so, it is until when prices rally, closing above $8,500 that conservative traders can ramp up on dips with first targets at $10,000 or higher. Because Bitcoin (BTC) is ranging, aggressive traders can load up on dips with targets at $8,500 as in a confirmation of the bull breakout pattern of early April.
Nonetheless, we cannot discount deeper corrections. Assuming bears flow back, any drop below the middle BB or May 17th low at $6,600 nullifies our trade plan since prices may drop back to April 2019 highs or $5,600.
Technical Indicator
Our anchor bar is May 19. Even though volumes are light, any break and close above $8,500 ought to be with high volumes exceeding 25k and 37k of May 11. The same rules apply if BTC slide below $6,600 below the middle BB invalidating our bullish outlook.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
 
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SEC Raises 39 Questions on Bitcoin Markets That Are Potential Deal breakers

The SEC (Securities Exchange Commission) in the US has delayed the VanEck Bitcoin-based ETF approval/disapproval once again. However, a lot of positive outcomes was seen this time around. The Regulators doubts now surround the volume and range of Bitcoin markets, rather than its fundamental nature of being a digital currency.
Also Read: Bitcoin ETF Update: SEC Postpones VanEck ETF But Bitcoin Price Responds Positively
VanEck has moved the ETF proposal as a commodity-based trust share which in this case in Bitcoin. The Commission noted that the decision has been delayed as the regulators are still unsure that the Bitcoin-ETF is
“designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,” and “to protect investors and the public interest.”
SEC’s Concerns About the ETF
The SEC has laid down an 11 point, 39 questions long concerns that it still thinks can lead to disapproval of the ETF. The primary concerns of SEC included protection against insider trading and manipulation of markets by a single exchange or point in time.
According to the SEC, the Bitcoin market might still be susceptible to manipulation, and it isn’t of a “significant size” yet to deter fraudulent trading activities.
Recently, the Bitcoin Futures contract at Chicago Futures Exchange was discontinued. Moreover, the actual difference in the volume of spot Exchanges and futures contracts and now subsequently, the ETF must be determined as well.
Furthermore, ETF intends to enable trading of actual Bitcoins [BTC], which is significantly different than Bitcoin Futures Contracts. Hence, the effect of each on both is important to understand the underlying price discovery characteristics of Bitcoin.
Let us understand the difference between the types of commodity-based futures to understand SEC’s concerns. Gold and silver are market-based ETFs, i.e., real gold and silver are held in Trusts, and the spot prices determine the ETF price. However, oil-based ETFs rely on the futures market for price determination.
VanEck has proposed that its CboeBZX index will be backed by the OTC markets. According to VanEck,
“the OTC desks have a better measure of the market than any exchange-specific reference price, whether individually or indexed across multiple exchanges.”
Nevertheless, the SEC has doubts over this the OTC markets are small and ‘unidentified.’ They said,
“[OTC] has no formal structure and no open-outcry meeting place? Is the use of a non-public, proprietary index to value holdings based on OTC activity an appropriate means to calculate the NAV of an exchange-traded product (“ETP”)?”
Bitcoin’s market is active 24/7, hence, the SEC also wants to make sure that the network is large enough to deter all manipulative activities even when the ETF markets are closed. The questions on arbitrage included,
“Is the liquidity of the OTC bitcoin market is sufficient to support efficient arbitrage between the price of the Shares and the spot price of bitcoin?”
Last but not least, VanEck has moved the ETF citing its relationship with Gemini Exchange to provide necessary OTC market price. Hence, the SEC is also concerned about the quantum of the volume of trading on Gemini Exchange vs the rest of the world.
The questions are laid down for any interested party who wishes to contribute to clear the concerns. Moreover, it also indicates while Bitcoin is being accepted as an asset, more clarity on the volatility and markets is required for a successful ETF approval.
Do you wish to contribute to the research? Please share your views and findings with us.
The post SEC Raises 39 Questions on Bitcoin Markets That Are Potential Deal breakers appeared first on Coingape.
Source: CoinGape

ETF? What ETF? Bitcoin Shrugs Off VanEck Delay with Instant 5% Gain

A day earlier than many were expecting, another SEC decision on a Bitcoin exchange traded has resulted in a delay. The one that today’s announcement concerned was a proposal that the digital asset space is generally most optimistic for – the VanEck ETF.
Despite the news event being largely expected, the Bitcoin price has responded by gaining more than five percent immediately following the announcement. This has taken Bitcoin back above the $8,000 level.
VanEck ETF Delayed Again, But Nobody Cares
An SEC decision over the approval of a much-anticipated exchange traded fund proposed by VanEck and SolidX has been delayed yet again. Previous delays during the bear market were frequently accompanied by price crashes. However, this has not been the case this time.
Rather than dump the price, the news of the delay has been accompanied with a gain from around $7,800 to over $8,000 in just a couple of hours. Crypto market analyst Mati Greenspan highlighted the price surge via Twitter:

Bitcoin is up nearly 5% since the SEC delayed the VanECK ETF two hours ago.
— Mati Greenspan (@MatiGreenspan) May 20, 2019

Since most of the crypto space was expecting such a delay, many have dismissed the decision as a non-event. With much of the sentiment around the market remaining bullish after early 2019 price rises, some have even stated that the delay could serve as a buying opportunity for investors:

ETF delayed (As expected)Don't think it'll impact the price a whole lot.That said I'm generally hoping & positioned for lower since yesterday.This would be a nice excuse to fill bids lower.
Generally a buying opportunity, not a reason to panic. https://t.co/mn8hqtm9g4
— DonAlt (@CryptoDonAlt) May 20, 2019

The latest delay from the SEC also includes a request for public comment on whether the regulatory body should approve a Bitcoin ETF.
If Bitcoin Gains on a Delay, What About an Approval?
For many, the approval of a Bitcoin ETF by the SEC is like the financial regulator giving the asset class its ultimate blessing. They see it as a catalyst for much higher prices – almost as if the SEC green light would legitimise crypto in the eyes of many.
One Twitter user posted a graph showing what happened when a gold ETF was first introduced. The parabolic upwards price action on gold is clear.

Deadline for the SEC to decide about the VanEck/SolidX Bitcoin ETF expires on Tuesday May 21
My thoughts
– Delay: No major effect
– Rejection: Opportunity to buy dip
– Approval: Image below illustrates what happened after GOLD ETF approval. In other words: instant Market Buy pic.twitter.com/lbIvg3w0SV
— Mounia Rabhi, MSc. (@Mounia_NL) May 20, 2019

The poster also states that the overall supply of Bitcoin being so limited compared to gold should lead to an even more violent upswing than observed in the market of the shiny precious metal following its own exchange traded fund being launched.
Interestingly, potentially negative news events, such as the recent Binance hack and the ongoing Tether scandal have not moved the market in quite the same way they have done previously. This lends support to the opinion of the likes of Tom Lee from Fundstrat and others that the bear market has run its course.
Lee holds that Bitcoin hitting $3,200 in December was the ultimate bottom for the current market cycle and that we are now very much in the beginnings of a bull market. He provides 13 reasons why he believes that the so-called crypto winter is over and consistently higher prices are to be expected going forward.

After a disturbing pullback to ~$6,200, #Bitcoin back >$8,000 further cementing positive trend intact.
As we said a few weeks ago, Consensus 2019 @coindesk was to prove whether crypto winter is over…
…confirmed pic.twitter.com/M8ni4g2YvX
— Thomas Lee (@fundstrat) May 19, 2019

 
Related Reading: JPMorgan Sees Imminent Bitcoin Price Fall; Why It’s Unlikely to Happen
Featured Image from Shutterstock.
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