Bitcoin ETF: SEC Receives 84% Negative Feedback on Application

[cybersofts]

The industry’s enthusiasm for a Bitcoin ETF (exchange-traded fund) appears to be waning — if you judge that by the dearth of new comment letters to the Securities and Exchange Commission in support of the investment vehicle.

The SEC received just seven comment letters from the public in response to a solicitation for feedback it had requested in February 2019. Of those, six urged the agency to reject the application. (That’s around 84%.)


Reference: https://www.ccn.com/bitcoin-etf-sec-receives-84-negative-feedback-on-application

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[butka]

I see that some of the negative comments revolve around market manipulation and people losing money. I tend to agree with the assessment that there is market manipulation. But there is also market manipulation (by the big banks) in the forex market that goes unpunished. People losing money is hardly an argument also. Nobody is forcing anybody to invest or trade for short term gains.

That being said, I don't think that Bitcoin needs an ETF. ETF can be a hidden source of inflation and additional manipulation. So we are better off without it.

[stompix]

This whole ETF thing has gone from being so much desired with people eagerly waiting for it to a thing that only gets a meh! or a yawn!. Probably by the time one of them finally get the green light there will be no one left to clamp their hands.

And, why do we need those ETF? For "investor's money'"? For "Wallstreet"?
I remember how many were enthusiasts when CBOE launched its future options, about the same number as the ones blaming them afterward for dragging down the price..

[posi]

This whole ETF thing has gone from being so much desired with people eagerly waiting for it to a thing that only gets a meh! or a yawn!. Probably by the time one of them finally get the green light there will be no one left to clamp their hands.

And, why do we need those ETF? For "investor's money'"? For "Wallstreet"?
I remember how many were enthusiasts when CBOE launched its future options, about the same number as the ones blaming them afterward for dragging down the price..

I myself dont personally dont have much interest in the bitcoin ETF and I have also said several time that I dont see the SEC accepting the ETF because it will literally be a terms which some powerful people will use to control or manipulation crypto market. In the case of CBOE and CME we also see some people who use the advantage of it to causes market down trend.

[dothebeats]

Back then people thought that the ETF is what bitcoin needs for it to gain traction and create another dramatic bull run which will net them a lot of profit. Those delusions and wrong assumptions ultimately waned and faded because SEC wouldn't give in, and people have shifted their attention towards something more doable on their terms without relying on the authority to make the move. See, just like the Chinese back in 2015 who lost its charm on the market over time, the ETF is also experiencing the same scenario albeit having a direct effect on the market given that most people bank on it. Even the futures market hype has died out after the ATH has withered..

[sunsilk]

I myself dont personally dont have much interest in the bitcoin ETF and I have also said several time that I dont see the SEC accepting the ETF because it will literally be a terms which some powerful people will use to control or manipulation crypto market. In the case of CBOE and CME we also see some people who use the advantage of it to causes market down trend.

I think from the very start they really don't have plans to approve it, there were applications already before this noise made by the WV twins but still rejected. And most of the applications last year were rejected too and now that they ask for feedback, still negative.

With the delay and other reasons that SEC is coming up with the application of bitcoin ETF, we tend to lose interest to it. Now, most are coming up with that idea that we really don't need it.

[Pab]

SEC is very late with his work regarding crypto
Still SEC didn't create rules what is security what is not
Bakkt CEO told in last interview that both CFTC and SEC regulators don't understand what blockchain is and how to manage  that.Now Bakkt CEO teach US regulators about blockchain
World will not wait for USA blockchain and crypto currencies is big money on the table
Biggest US companies wants to enter crypto. Facebook.IBM and last news are about VISA
So i think that ETF will be finally accepted but not yet now

[Kimonoe]

SEC is very late with his work regarding crypto
Still SEC didn't create rules what is security what is not
Bakkt CEO told in last interview that both CFTC and SEC regulators don't understand what blockchain is and how to manage  that.Now Bakkt CEO teach US regulators about blockchain
World will not wait for USA blockchain and crypto currencies is big money on the table
Biggest US companies wants to enter crypto. Facebook.IBM and last news are about VISA
So i think that ETF will be finally accepted but not yet now

right, it takes time to be able to receive ETF, this is proven by the increasing number of companies that use it. Lastly I knew that the New York Times also started using blockchain, of course this could be a consideration too

[avikz]

The industry’s enthusiasm for a Bitcoin ETF (exchange-traded fund) appears to be waning — if you judge that by the dearth of new comment letters to the Securities and Exchange Commission in support of the investment vehicle.

The SEC received just seven comment letters from the public in response to a solicitation for feedback it had requested in February 2019. Of those, six urged the agency to reject the application. (That’s around 84%.)


Reference: https://www.ccn.com/bitcoin-etf-sec-receives-84-negative-feedback-on-application

It was somewhat expected due to the increasing number of criticisms received for the proposals of synthetic ETFs. Also the propaganda marketing of Banks against cryptos have fueled such kind of comments as well. I would not be surprised if we later find out that these people are even somewhat affiliated with Banking Business.

However, ETFs will not bring any real value to the crypto market as majority of the proposed ETFs are synthetic in nature. Only exception is the Winklevoss one! So no need to be sad either!

[Beerwizzard]

And, why do we need those ETF? For "investor's money'"? For "Wallstreet"?
I remember how many were enthusiasts when CBOE launched its future options, about the same number as the ones blaming them afterward for dragging down the price..

For the developing of the market, I think.
With a larger trade volume, the market will become more resilient to any kind of dumps and with a larger amount of qualified traders FUD won't be so dangerous for the market. In general, it may lead to more stable BTC price.
Comparing to BTC futures those ETF will really buy BTC from the market while futures were just gambling within CBOE where no one has been buying a single sat.

[niteroy]

Probably now is not a good time for the adoption of the ETF and it should be finalized so that the SEC does not have unnecessary questions and complaints. I think that by the end of the year, when there will be a rise in cryptocurrency prices, the relevance of the ETF will reappear and there will be more of those who have a positive attitude towards the adoption of ETF Bitcoin.

[Indrawan77]

It's sad to see someone still not too open minded about bitcoin, the world is advancing in a rapid speed of technology, if we keep on deny the new idea then we can't have a better technology in our lives, usually the one that rejected is the one that not understand the intention of bitcoin creation, and the old traditional investors who don't want to learn about new things

[traderethereum]

I don't think of ETFs anymore because bitcoin can remain between us and it will, with or without ETFs. Let them decide to approve or reject bitcoin but one thing I'm sure, people will choose what they want. And if people feel that bitcoin can really help them, then they will choose bitcoin, and there is nothing the government can do because it is a public vote and they cannot fight the public.

[Lucius]

However, ETFs will not bring any real value to the crypto market as majority of the proposed ETFs are synthetic in nature. Only exception is the Winklevoss one! So no need to be sad either!

I do not know why you are so confused with type of Bitcoin ETFs, especially since you repeatedly asked for differences and got an explanation. Winklevoss ETF is based on futures, just like most other proposals - and the only one who could make a difference is ETF from VanEck’s SolidX&CBOE which is physical, means that shares are backed by real bitcoins.


Regarding negative feedback for VanEck SolidX Bitcoin Trust, it is only 8 comments and they are from some random people, they have almost no effect on final SEC decision. Also 5 of them is posted on same day, it is possible that one person is responsible for all comments.

[el kaka22]

The article and the headline when you look at them screams clickbait as hell. First of all its just 7 letters that went there, only 7, compared to amount of people who will use this ETF for their investments the letter count of 7 is just funny, for something this important it should have been in the thousands but people do not care to send anything to SEC, they really don't care about it, they just let it be. And when you say 84% of all letters send were negative you mean literally 6 of them, just 6 bad letters to SEC about the bitcoin ETF.

Not that I care what SEC thinks of bitcoin and bitcoin ETF but in all honesty, having only 6 bad letters about bitcoin ETF is a good number, I would have assumed like 2341 good 5423 bad ones and so forth not like this small amounts. I wouldn't worry about it if I were you, its all fine.

[palle11]

That being said, I don't think that Bitcoin needs an ETF. ETF can be a hidden source of inflation and additional manipulation. So we are better off without it.

You are quite on a point. ETF is a form of regulation just like the forex market too and the banks do manipulate it. With ETF, we are likely to see a huge manipulation from the whales collaborating with the regulating body to capture the market to themselves.

[Baofeng]

Then expect the price of bitcoin to go down once this news spreads like wildfire and I'm sure the twitter world will explode again, thus creating a avalanche of negativity causing others to panic again. But majority really knows that SEC will just give us another rejection because obviously, this market is really prone to manipulation, admit it or not. So I'd say, prepare for the worst again and hope that no one will go on a panic mode (specially noobs), and push the sell button once hearing this news.

[daarul50]

I think bitcoin does not need the ETF at all because without the ETF the crypto market continues to run, only if the ETF accepts it, the bitcoin will be more trusted by investors because so far the discussion in bitcoin-related ETFs is a matter of market manipulation, even though the manipulation can only by a number of large banks that we do not know that the bank has plunged into the cryptocurrency market.

[Beerwizzard]

I think bitcoin does not need the ETF at all because without the ETF the crypto market continues to run, only if the ETF accepts it, the bitcoin will be more trusted by investors because so far the discussion in bitcoin-related ETFs is a matter of market manipulation, even though the manipulation can only by a number of large banks that we do not know that the bank has plunged into the cryptocurrency market.

What is the problem with BTC being trusted by investors? Right now we have whales, the only way to make market more stable is to increase the amount of those whales and the general market cap.
None of the major markets consist only from minor users.

[STT]

Of those, six urged the agency to reject the application.

I think people oppose competition and seek a rejection for that reason.   Theres an ETF for all sorts of commodities and currencies and many are not stabilised or based on any set monetary base.  Where as Bitcoin has a quite straight forward schedule for its past and future currency release, there is no sudden change to that likely unlike something like XRP where the majority of the coins are hidden away to be gifted to the makers at a later date (massive debasement)

Problem is the dollar itself and many currencies are not stable exactly and release as much new money as they need to pay bills.