Lack of clear regulatory guidelines and the uncertainty it brings has delayed the development of the crypto industry. This is particularly evident when we look at the challenges faced by firms looking to list exchange-traded funds (ETFs) based on the traded price of bitcoin.
In June 2018, the U.S. Securities and Exchange Commission (SEC) did not approve the Winklevoss brothers’ application for the first cryptocurrency ETF on the BATS BXZ Exchange. The regulator highlighted security, market manipulation and investor protection as significant compliance issues.
In January this year, the Chicago Board of Exchange withdrew its application for the SolidX and VanEck bitcoin ETF and then re-submitted the application a few days later. At the same time, NYSE Arca filed a proposal with Bitwise Asset Management for a bitcoin ETF.
By Matthew Sullivan, CEO of QuantmRE