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
"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."
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...