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Bitcoin United States

SEC Rejects Valkyrie, Kryptoin Bitcoin Trusts (reuters.com) 36

Posted by msmash from the market-movements dept.
The U.S. Securities and Exchange Commission vetoed two proposals to offer bitcoin exchange-traded funds, dealing a blow to market participants who had hoped the agency would green light the effort after approving futures-backed bitcoin funds in October. From a report: In a notice dated Wednesday, the markets regulator said both of the proposals to list and trade shares of Valkyrie Bitcoin Fund and the Kryptoin Bitcoin ETF Trust failed to be approved because they did not meet its standard. "(These proposals) do not meet the standard of being designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest," the SEC said.
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SEC Rejects Valkyrie, Kryptoin Bitcoin Trusts More

SEC Rejects Valkyrie, Kryptoin Bitcoin Trusts

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  • Bitcoin futures? (Score:3)

    by Joce640k ( 829181 ) on Friday December 24, 2021 @01:05PM (#62112255) Homepage

    There's nothing shady or underhand about selling Bitcoin futures. Nope. That's 100% safe.

    • Re: (Score:3, Insightful)

      by JustAnotherOldGuy ( 4145623 )

      There's nothing shady or underhand about selling Bitcoin futures. Nope. That's 100% safe.

      Selling futures in a vaporware 'product' that fluctuates wildly in price, what could go wrong?

      It's like the stock market, but worse (and that's saying something).

      • Re: (Score:2, Insightful)

        by PPH ( 736903 )

        This, exactly.

        It appears that the SEC is on it's toes. And their memory of history (2007) is fresh. Trading synthetic securities based on non-registered/non-standard assets is a recipe for disaster.

        • Re: (Score:2)

          by gweihir ( 88907 )

          Also note that "(These proposals) do not meet the standard of being designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest", which is a polite way is saying this stuff is pure gambling. With stocks, there is at least the illusion it is actually an investment and there usually is some real company behind them that sometimes holds part of the stock and has an interest in it not plummeting. (No idea what the actual rules on this are.) In addition, th

          • Exactly. With stocks on the exchanges, there is a great deal of law and regulation guaranteeing that a share of stock means real ownership, in some form or another.

            A lot of people in stocks are using them as a means to gamble ie speculate, this is true. But that doesnt mean the stocks in question are sketchy. Crypto AND stablecoins are quite the opposite.

      • Selling futures in a vaporware 'product' that fluctuates wildly in price, what could go wrong?

        It's not that it fluctuates, it's that it's so incredibly easy for the big players to pump/manipulate the price.

        Selling futures would multiply their profits by 1000s of % because anybody who buys futures loses 100% of their 'investment' if it doesn't work out. It's not like ordinary stocks where you lose a percentage if the price goes down, you literally lose it all.

        • It's not that it fluctuates, it's that it's so incredibly easy for the big players to pump/manipulate the price.

          You just admitted that it fluctuates by saying that "it's easy for the big players to pump/manipulate the price."

          If the results of "pumping and dumping" aren't fluctuations, what would you call it? That's like saying the water pressure in your home "doesn't fluctuate, it just goes up and down."

          Here are some of the historical crashes (I mean "fluctuations") in Bitcoin:

          June 2011: -99%
          In 2011, Bitcoin hit the big time when it soared from $2 to more than $32, achieving parity with a

      • The SEC already approved bitcoin futures ETFs, while continuing to refuse spot ETFs.

    • Re: (Score:2)

      by splutty ( 43475 )

      Never understood that one either. But then again, I'm firmly of the opinion that futures shouldn't ever be a thing to begin with. They're far too vulnerable to manipulation by design.

    • There's nothing shady or underhand about selling Bitcoin futures. Nope. That's 100% safe.

      Not defending crypto here, but name one investment that's 100% safe. You've set a pretty high bar.

      • 100% of course doesn't exist, but you can get pretty much there using real world instruments - f.ex. US Treasury bonds.

    • It's no coincidence that when Bitcoin futures were first launched in December 2017, that was also the first peak of Bitcoin around $20,000. Futures allowed Wall Street to finally control the price of Bitcoin, and since they had missed out on Bitcoin, they wanted to drive it down so they could get in cheap. So Bitcoin dropped to around $3000 over the next year, which allowed them to accumulate at an 85% discount, and they finally let it go back up, and it has skyrocketed since then.

    • The SEC already approved bitcoin future ETFs, while continuing to refuse spot ETFs.

  • Cryptocurrencies are garbage and should be treated as such. Remove the part where people are getting rich by wasting electricity (thus polluting the planet) and then it might have some value.

    • There is a great SF book/movie idea hidden in your remark: imagine a future where electricity is so expensive that they pay human experts at factorizing numbers to prevent the implosion of the crypto-industry and drag the rest of civilization along in its fall...

    • Remove the part where people are getting rich by wasting electricity (thus polluting the planet) and then it might have some value.

      So if the crypto is run on solar, hydro, geothermal, wind, or nuclear power it's okay? BTW, unless you are meticulous about your electrical usage, you probably waste electricity (and pollute the planet) as well.

      • So if the crypto is run on solar, hydro, geothermal, wind, or nuclear power it's okay?

        That depends on if the rest of the world has switched over to clean energy or if by using it then you are simply depriving someone else of clean energy.

        BTW, unless you are meticulous about your electrical usage, you probably waste electricity (and pollute the planet) as well.

        Absolutely. That said, it's not being done intentionally or on any scale of significance. Cryptocurrency is both intentional and on a large scale.

        • So if the crypto is run on solar, hydro, geothermal, wind, or nuclear power it's okay?

          That depends on if the rest of the world has switched over to clean energy or if by using it then you are simply depriving someone else of clean energy.

          Wow... And your vote is worth the same as mine.... That is a real problem.

          We got a socialist mouth-breather here who thinks the world is hooked up to a single grid. Depriving someone else of clean energy. Well... It's X-Mas so I'll make this as polite as possible.

          FUCK YOU AND YOUR FACE

          Have a nice day.

          • Blah blah blah. All y'all do is repeat what Fox News tells you to think. Not gonna waste any further time on you or your type.

            • Blah blah blah. All y'all do is repeat what Fox News tells you to think. Not gonna waste any further time on you or your type.

              Don't choke on any dicks today, communist bitch.

  • Smart move not to let Tulipmania 2.0 sink its claws any deeper into the wider stock market. No sense giving it more ability to damage the rest of the economy when it goes bust.

  • A perfect example (Score:3)

    by hdyoung ( 5182939 ) on Friday December 24, 2021 @02:28PM (#62112419)
    of the value of responsible government regulation. 3 out of every 10 bitcoin investments evaporate instantly when the founder cashes out and flees to Mali. The SEC prevents people like that from listing on the legit exchanges, where they might be able to accumulate billions rather than millions to scam.

    Stablecoins fall into this category too. Every time regulators actually dig into their collateralization, the answer is “oh yeah totally not backed like they claim beware danger danger danger.”

    Want the advantages of being legit? You gotta, you know, ACTUALLY BE LEGIT. A lot of people crap on government regulation. They should be careful what they wish for.

  • "DeFi" = "Deregulated Finance" (Score:1)

    by Anonymous Coward

    Don't let the crypto bros fool you: "DeFi" means "Deregulated Finance", not "decentralized" as they're trying to pass it off as.

    The crypto bros all want to wrestle control away from governments, and do it without any oversight, and hence no accountability. Why else do you think they're all throwing a fit whenever the specter of regulation comes up (you know, the thing all legitimate currencies have to adhere to?)

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