- The regulator explains, why it is not happy with Bitcoin ETF idea.
- Cryptocurrency market is recovering despite bad news.
The US regulator hints that Bitcoin-based ETF might not be approved anytime soon due to weak investor protection. Speaking at a conference in New York, the head of the Securities and Exchange Commission Jay Clayton expressed concerns that cryptocurrencies are vulnerable to fraud, manipulation and cyber theft.
“What investors expect is that the trading in that commodity that’s underlying the ETF is trading that makes sense, is free from the risk or significant risk of manipulation. Those kinds of safeguards don’t exist in many of the markets where digital currencies trade,” said Clayton, interviewed by Silver Lake co-founder Glenn Hutchins.
The SEC turned down several applications for Bitcoin ETFs and postponed the decision on the VanEck ETF proposal. Currently, the verdict is expected to be announced by December 29. The Commission’s staff members are concern about potential price manipulations in the unregulated market for digital assets.
Meanwhile, global cryptocurrency market is on recovery mode on Wednesday. All top-ten coins are gaining from 2% to 13% on a day-to-day basis except for Bitcoin SV, which is down 13% after a stellar rally at the beginning of the week. BTC/USD is hovering around $4,000 handle; ETH/USD is changing hands at $114.00, off the recent low of $100.89. XRP/USD failed to regain $0.3800 and slipped to $0.3750 by press time.
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