📰 23/8/2018 SEC rejects 9 Bitcoin ETF applications: what happens to the Bitcoin price (and why?). Cryptocurrency/blockchain news — the daily overview
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📌 SEC rejects ProShares Bitcoin ETF
The Commission claims that the company can't prevent ”fraudulent and manipulative acts and practices”
Hello everyone - the main news of the day is that SEC (Securities and Exchanges Commission of USA) rejected several Bitcoin ETF proposals, namely:
- ProShares Bitcoin ETF and ProShares Short Bitcoin ETF - Release No. 34-83904;
- 5 Direxion Bitcoin ETFs – Release No. 34-83904;
- GraniteShares Bitcoin ETF and the GraniteShares Short Bitcoin ETF - Release No. 34-83913.
The SEC mentions that decisions do not depend on the innovative or investment significance of Bitcoin. However, there are not so many factors at once, why the Commission rejected the creation of exchange-traded funds with BTC as the main asset. The reason for both decisions is the same - the inability to resist manipulation on the market. Here's how it sounds:
«the Exchange has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular, the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.»
Document: ProShares ETF
Until then, the Commission only postponed applications for the creation of similar funds. Now we see, that the SEC policy becomes most inflexible and unambiguous on this issue. Let's think about it.
📌 On the background of the ETF rejection, dump in BTC price doesn't seem too big
Is the BTC price reflecting the situation with Bitcoin ETF? Several authors are searching for the truth
Back the beginning of this year, the market received a disappointing response from the SEC about Bitcoin exchange-traded funds. In winter, the Commission expressed serious doubts about the liquidity and volatility of the cryptocurrencies, as well as the products that are associated with them. The regulators stated that they "asked sponsors that have registration statements filed for such products to withdraw them."
However, already in spring and summer, we saw a noticeable recovery and even some confidence in the adoption of the B-ETF. Some of the community members were convinced that this would allow the whales to wave their tail and bring the institutional money, while others spoke out against the "hand of the market". Many of the holders decided not to attach importance to this, and it seems that they chose not the worst position for today, because the reaction of prices is still not transparent.
A common idea is, that the ETF expectations support BTC price (although prices were only declining, in the general perspective), and now another refusal could provoke the same dump, like the Winklevoss twins bitcoin ETF rejection did. Maybe this news will overplay this a little later, however, we do not see that Bitcoin goes beyond $6200-$6400. (The altcoins market, of course, is still in the lowland). The "main" decision on Bitcoin ETF from CBOE/ SolidX will be published on September 30.
Therefore, there are still some positive reasons why BTC price will be flexible, resistant to a serious dump (a whole month before the CBOE decision). But, it seems, the Commission will not depart from its initially negative position on Bitcoin ETF. Although, who knows, maybe they just wanted to skip the small fish ahead.
- (Recent price changes are made in just a few minutes or hours, so it can seem more manipulative and less fundamental).
📌 China is nearly sure to block 124 foreign crypto exchanges
The Chinese crypto market is likely to become fully closed
Of course, according to the essence and technical core of the cryptocurrencies, no one can completely lose access to them, including through exchanges. But, this approach raises questions.
Chinese regulators reported their intention to close access to foreign crypto exchanges (a total of 124 foreign IP addresses). At the moment, such big platforms as Binance, OKEx and Bitfinex) can't be accessible in China. Further, when all foreign exchanges will be restricted, authorities will continue to monitor the network to prevent "crypto danger".
The first report about it has appeared on news.cnstock.com.
💰Market Cap: $210 133 523 585
💵24h Vol: $11 358 400 907
📊 Prices TOP 23.08.2018
↗️↘️Bitcoin: $6 487
↗️↘️ETH: $278
↗️↘️XRP: $0,322010
↗️↘️BCH: $529
↗️↘️EOS: $4,92
↗️↘️XLM: $0,211616
↗️↘️LTC: $56
↗️↘️USDT: $0,99
↗️↘️ADA: $0,09
↗️↘️MONERO: $91
📌 Russian authorities plan to impose a criminal penalty for the crypto operations without "registration"
Russia can reduce the volume of circulating cryptocurrency without clear regulation
The Ministry of Internal Affairs of the Russian Federation is considering a number of restrictions for the unregistered use of crypto. Briefly, what is proposed:
- The fact of the crypto use should be registered in the tax and financial services. It is not known whether the receipt of a coin is an activity that must be registered;
- Direct tracking of user transactions will be carried out while the amount of exchanging funds will be higher than 600 thousand rubles ($8 787).
- The main goal is to prevent transactions in the illegal market. But, as we understand, the punishment for illegal activities is already established, so the consideration of the cryptocurrency in this sense will be superfluous.
At the moment, this bill is still pending. Now, in Russia, there is no common definition of cryptocurrencies status.
📌 World Bank will issue blockchain bonds in $73M worth
The issue of bonds on the Ethereum network is scheduled for next week
Earlier we already reported that the largest Australian bank (Commonwealth Bank) introduced the first blockchain-based bonds in agreement with the World Bank.
- The bonds are scheduled for issue on August 28.
The term of this asset is actually 2 years, and the yield is evaluated at 2.2%. This is also the first experiment with the transfer of the traditional asset on the new blockchain basis.
Why is it important? The first infrastructure changes in the world of distributed technologies are already taking place. While regulators continue to look at the crypto in the negative way, many commercial institutions have already tried the first solutions based on blockchain.
💱 Exchanges: 24h volume
Binance 1.31B → 20.20%
OKEx 660.80M → 10.18%
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