Reasons why the SEC would want to stop institutional investment into Bitcoin?

[Kakmakr]

Last night I was thinking about the continuous battle to get the SEC to approve Bitcoin related exchange-traded funds (ETFs) and I analyses their excuses. Most of the excuses are centered around global <external> manipulation of the Bitcoin price. As we have seen lately, even Bankers and large cartels are manipulating Gold prices, so this is not something that is unique to Bitcoin.

Then I thought about the real reasons why the SEC would want to stop institutional investment in Bitcoin and this is what I came up with :

1. If they allowed Bitcoin ETFs, investment capital will move from traditional ETFs <which are under their control> to Bitcoin that are not under their control.
2. Nasdaq's SMARTS Market Surveillance systems control and monitor everything and these exchanges might not run this software. 
3. The puppet masters do not want the "Average Joe" to play with the big boys.
4. Political influence < Pressure from the people who are funding politicians careers, eg. Banks>

Let's discuss the real reasons why the regulating authorities would want to stop institutional investment in Bitcoin. 

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[davis196]

The "Average Joe" isn't a threat for the big boys.Actually the big boys want the Average Joe to start trading and investing,so they could get his money(in one way or another).
I don't think that banks and politics see bitcoin as a big threat.They could easily buy it,instead of trying to destroy it.
The main reason for bitcoin ETF's decline is that the bitcoin price can be manipulated very easy.

[Kakmakr]

The "Average Joe" isn't a threat for the big boys.Actually the big boys want the Average Joe to start trading and investing,so they could get his money(in one way or another).
I don't think that banks and politics see bitcoin as a big threat.They could easily buy it,instead of trying to destroy it.
The main reason for bitcoin ETF's decline is that the bitcoin price can be manipulated very easy.

Ok, so if it is all about manipulation, why are they allowing other precious metals ETF's that are also being manipulated? Could it be that this manipulations are exempted, because the manipulation being done is government sanctioned and approved by them? <Playing Devil's advocate now>  

https://7bitcoins.com/ex-jpmorgan-trader-pleads-guilty-to-spoofing-on-precious-metals-market/

The whole financial system is based on control of financial instruments and keeping financial control in the hands of a small group of people. They want to know where the money is going and how much of this money are going into the wrong hands. The pseudo anonymity of the global Bitcoin market must be a huge threat to their control.  

They know who are manipulating the price of other ETF's, so they can control it, but the global Bitcoin price is not under their control.    

[St4yInTh3D4rk]

I strongly believe on your first point,if ETF get approved then many investors will move to bitcoin investment from their traditional investment so which will cause a great loss for them and also some of the big owners who is controlling the banks will may pressure on them to make bitcoin not getting approved for ETF.

[Marcel666]

Bitcoin ETF would be a way for big players to manipulate the bitcoin market.
And taking the sentiments of Ethereum founder Vitalek Buletin, I don't think it would be vital in the goal of price stability which is essential for any currency.

[coinwizard_]

I agree with points 1 & 4 where they hate things they can control, and political pressure. If more politicians accepted bitcoin donations so they can also hold a pot, we have a better chance of gaining sec approval

[jseverson]

I honestly don't think there are large scale conspiracies going on around here. Gold prices are manipulated, yes, but the Bitcoin market is unregulated and is therefore potentially open to much larger scales of manipulation. I don't lean too heavily on either side, but I can see why they may be concerned about that. I mean, if it's popular for people involved to try to rationalize just about every price drop as a handful of whales manipulating the market, there really may be a cause for concern.

I'd also like to note that some people also seem to believe that an ETF approval is more likely thanks to Elad's Roisman's SEC appointment.

[Infinixhot1996]

Your first point is very valid I must say, if such laws is approved,there would be an influx of more and more investors who had hitherto invested in projects the government could tweak from its cozy offices..

But if such investments were to start pouring into the bitcoin network,how then would the government control and tweak such in their favor

They must have plans mapped out already

[tightcoat490]

I think it's a little of all of those points, but mostly 1 and 4.

They also might not feel entirely confident with their current software, and I don't think they want "Average Joe's" to be able to make a killing. Investing has always been designed to benefit the elite, hence the complicated terminology lol. Also this isn't taught in school, but is the most profitable and fastest way to make money..

[sorrysteve1]

I don't believe that the SEC has any underhand reasons for not wanting to stop institutional investment into bitcoin, the only reason I believe is because it is their belief that it is within their mandate to do so because it can present a threat to numerous things, be that individuals or the economy as a whole. Not everyone of power has to be corrupt or have their fingers in multiple pies.

[bartolo]

I think it would be very easy for the SEC to close that door if they wanted to. They simply could say “we will never accept a Bitcoin ETF and we will not receive any application related to Bitcoin or any other cryptocurrency” so I have to assume that their reasons are real. This does not exclude the possibility that they may be under pressure from entities described in point 4.

[Pursuer]

I honestly don't think there are large scale conspiracies going on around here. Gold prices are manipulated, yes, but the Bitcoin market is unregulated and is therefore potentially open to much larger scales of manipulation.

in addition to that, the bitcoin market compared to gold market is tiny. the price is determined on exchanges that are small too. we have seen the high volatility which is the product of that. it doesn't have to be manipulation for price to swing like that up and down.

all these theories aside, I believe the "big boys" are already in. but they have used bitcoin as a place where they parked their money because it is decentralized and nobody including banks or government can touch it. and they will continue doing that. but if things like ETF become a thing they may start thinking about bitcoin seriously and as a way to make money. in which case we may see even more manipulation and swings. which is not what we want. and maybe that is why whey are not accepting ETF.

[bellamente]

SEC is a tool in the hands of the US government. They will ban Bitcoin until they can control the cash flow inside the blockchain.

I think now they do not have a certain position.

[kelaxo76r]

In the course of recent months, the cryptocurrency crash has drawn out the doubters. Indeed, the continuous "Crypto Winter" is a sound purifying of the environment on the grounds that the adjustment is viably isolating long haul value creators from short-term day traders. With everything taken into account, we trust that a "Crypto Spring" will arrive. Also, institutional capital, a.k.a. the sticky, brilliant cash, could introduce this new season.

[Kprawn]

I do not think there are some sinister plot against Bitcoin. The SEC has to protect the average citizens against financial

instruments that might be harmful. Bitcoin is a experimental project and the scaling solution is not yet matured, so I can

understand why they might be hesitant to expose the average Joe to something that might be risky. They also protect the

rich people that are paying the large portion of the taxes. 

[Al-e_x]

I think, ETFs get pressure from some people who hate bitcoin, or bitcoin ETFs being a facility for political interests.

I am sure, if the ETF cannot be neutral and cannot take firm decisions to support crypto, then the market will fall again.

[dothebeats]

Main reason I see about this is control, but that can easily be taken care off by the SEC once solid regulations regarding platforms and exchanges facilitating ETFs are put into place. Average Joes meddling with the big boys of the financial world is actually more favorable since more and more 'easy' money can be taken; any other firm apart from NASDAQ can create their own monitoring system for bitcoin ETFs since the SEC can release a memo iterating that ETFs should be monitored closely. Well, all of these reasons can be covered up by the SEC if they really wanted to. They just have to put the proper regulations in place.

[cxmyifan16]

To tell the truth i don't see any real reasons why to stop investment into btc. To my mind, it is better to invest in btc because it is the coin of our future and it will be the great one for really long time. As for me, it is the best decision ever

[bitvalak]

The main reason is that they want to have full control over bitcoin, with businesses without controls like bitcoin making it difficult for them to play the price.
Therefore the only way is to stop the bitcoin business because they feel they have been unable to find where bitcoin controls are.
This is the reason why I like bitcoin because the price is free and is determined by the bitcoin holder itself, not the dealer or a particular group.

[franky1]

SEC dont want to stop it.. they just want their buddies playing the main game

they do not want average joe to have "first mover advantage"
they want the big boys to be the first mover in ETF

however the big boys are buying up BTC. and have probably made a loss due to january-march correction. so those bigboys are themselves waiting for year-end. to claim a tax-loss to reduce how much tax they have to pay out.

thus start 2019 fresh and in instant profit..

thats when you will see it all play out and move forward.