5 Ways to Increase Acceptability of Cryptocurrency: From Skepticism to Mainstream Adoption
Leave a comment
Your email address will not be published. Required fields are marked *
2022-06-23 | Selina Mathew
Introduction
The SEC said it was rejecting the ETFs because of concerns over "fraudulent or manipulative acts and practices" related to bitcoin trading.
Earlier this month, two exchange-traded notes (ETNs) debuted on the Nasdaq Stockholm in Sweden, providing investors with a new way to speculate on bitcoin's movements.
The Crypto-currency Act defines virtual currencies as digital assets used as a medium of exchange, a unit of account or a form of stored value but not recognized as legal tender.
The Securities and Exchange Commission blocked nine additional bitcoin ETFs recently, bringing the total number of rejected applications by the SEC to 14.
The ETNs are a way for investors to bet on bitcoin's movements, but they aren't an investment in bitcoin itself.
There are two ways to use them: buying or selling short (betting that bitcoin prices will fall), or buying long (wagering they will rise).
The notes were developed by XBT Provider, which is owned by U.S.-based CoinShares Holdings Ltd., according to Bloomberg News.
They trade under the ticker XBTCO and XBCH9 on Nasdaq Stockholm, respectively.
This ETF is expected to be one of the most heavily traded on its exchange, with a daily trading volume in the hundreds of millions.
Its launch comes as bitcoin prices have fallen more than 70 percent from their December peak.
With a price of $9,724 at the time of writing, down from highs above $19,500 in mid-December.
The cryptocurrency has been under pressure following news that U.S. regulators are investigating potential manipulation in digital currencies and South Korea plans to impose new regulations on some exchanges
In addition to this latest ETN approval, New York-based VanEck Securities Corp recently filed for an ETF with the SEC that would track bitcoin futures contracts listed on exchanges regulated by U.S.'s Commodity Futures Trading Commission (CFTC).
Read More Cryptocurrency News
Conclusion
In other words, this ETF isn't going after bitcoin because it has any idea what will happen to the price.
It's going after bitcoin because investors want a reliable way to short it and profit as the currency loses value—something that's been particularly difficult to do with an unregulated investment like cryptocurrency.
Your email address will not be published. Required fields are marked *
5 Ways to Increase Acceptability of Cryptocurrency: From Skepticism to Mainstream Adoption
The Bitcoin Savings and Trust Scam: The First Scam in the History of Bitcoin
The Birth of Bitcoin Exchange: A Look Back at the First Bitcoin Exchange
How Does Bitcoin Network Work? What Are BTC Nodes?