After almost a year since the application was introduced in 2021, the SEC formally rejected the proposal of SkyBridge Capital capital is most commonly defined as the large sum of money you would use to invest. citing concerns about price manipulation and few guarantees for investors.
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La U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) the main regulator in this area, officially rejected the proposal for an exchange-traded fund on the Exchange Traded Funds (ETF) based on Bitcoin proposed by SkyBridge Capital, company directed by Anthony Scaramucci.
SEC rejects request for ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. introduced by SkyBridge Capital
Originalmente SkyBridge introduced the respective application in March 2021, just at the time when the interest shown by investment funds in launching a ETF based directly on Bitcoin. However, this proposal was rejected, as were others submitted during the same period, including the proposal submitted by VanEck.
According to information published by the SEC, the request for SkyBridge was rejected on the same grounds that others of the same type have failed, citing the risks associated with fraud and price manipulation, since the price of Bitcoin comes mainly from its quotation on the main international exchanges, which are susceptible to volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. due to the large movements of capital in very short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. periods of time.
In this case, SkyBridge introduced the application for the hand with NYSE to list and negotiate the corresponding fund. In view of this, the SEC indicated that the proposed changes did not address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the above-mentioned doubts and concerns, as they did not ensure adequate protection for investors in the event of such irregularities.
No change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. in position
The new decision taken by the SEC is in line with its pronouncements on other similar proposals. Thus, everything seems to indicate that the agency has not yet changed its perspective on the ETF based on Bitcoin.
Let’s keep in mind that the agency took a step forward in October of last year after approving ETF’s based on futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. of Bitcoin, However, these types of products are subject to other rules and principles, so they are not as close refers to the closing price; similar to the same term used in stock trading. an approach to digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies for traditional investors.
Critics say that while accepting ETF’s based on futures BTC are an important step, the allegations that it does not accept those funds based on the digital currency currency is a medium of exchange that defines value. would technically also affect the market an area or arena, online or offline, in which commercial dealings are conducted. for the aforementioned derivatives. Therefore, it is considered that if the regulator continues along these lines, it would be wasting valuable business opportunities that other countries are already taking advantage of.
The race for the first ETF Bitcoin in the USA continues
Although the prospects are not at all favorable for the other candidates who are on the same path, they are still standing firm and are waiting for the verdict of the SEC to find out whether or not their applications for a EFT Bitcoin.
At this point there are entities such as Galaxy Digital, Fidelity, ARK Invest investing is when you put money in a financial scheme with the intent of making a gain. and other reputable companies, which aspire to be the first entities to launch the first ETF fully based on digital currency.
- SEC Postpones Decision on NYDIG’s Physical Bitcoin ETF Until March
- SEC formally rejected Bitcoin ETF application filed by WisdomTree
- Grayscale criticizes SEC for not treating Bitcoin ETFs the same as BTC futures-based ETFs
Source: SEC , Cointelegraph , Theblockcrypto
Version by Angel Di Matteo / DiarioBitcoin
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