Asset manager: sponsors need to do better job to prove bitcoin ETF viability

Author: Olly Jackson | Published: 6 Sep 2018

The Securities and Exchange Commission’s (SEC) rejection of nine bitcoin exchange traded funds (ETFs) signals the market needs to make a number of changes if one is to be approved soon.

But the blame lies mostly with potential sponsors rather than with the regulator, says John Hyland, global head of exchange traded products at Bitwise Asset Management.

"It is not up to the SEC to prove that there is a problem with bitcoin," he said. "It is up to the sponsors to show that a bitcoin ETF is within the bounds of acceptable financial market behaviour and in my mind so far, they have not done a good job of showing that is true."

Background

The SEC reiterated in Proshares’ application that this doesn’t mean an outright rejection of bitcoin ETFs themselves, but rather that the current market doesn’t sufficiently protect against fraudulent and manipulative acts and practices. The fact that...


 

 

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register