Published 28 Jul by CryptoDiffer Team
Good afternoon, guys, I'm in Puerto Rico now.
I decided to release a short video and tell you a bit of news that revolves around ETF on Bitcoin. I want to immediately warn you that there are a lot of rumors and speculations in this area and I want to clarify everything to you now.
First - the application for ETF brothers Winklevoss was declined. Who among you has long been with me, they know that I always doubted that they will succeed - and it happened. The SEC is most concerned about market manipulation, and the ETF of brothers is based on the Bitcoin price on the Gemini Exchange. And the SEC said: "Listen, guys, the lion's share of the volume is on other exchanges, we believe that all this is manipulating and investors will not be able to trust the price of ETF."
I knew that this would happen, but the market for some reason was surprised and went dump.
I talk with the big guys in the market and none of them expected the approval of this ETF.
Secondly - earlier this week, the SEC postponed the review of five ETFs to Bitcoins.
And I want to make it clear that among them there was no application of CBOE, VanEck and Solid X - it remained untouched. This is due to the fact that it will be approved while five other applications are ignored and the Winklevoss ETF is generally shot.
There are several reasons.
The first is that the CBOE has sufficient decision and power on this decision in its favor and that they put their reputation on this ETF already means a lot. Yes, this is an ETF from VanEck and Solid X, but CBOE oversees this issue.
For SEC it is more profitable and safe to approve ETF from a world-scale institution with a good reputation - and CBOE is so. They will receive approval from the world community more than if to approve the ETF from less popular applicants - from the knockers that broke cabbage after the ships with Facebook and bought Bitcoin in its early years.
The second - CBOE ETF will be insured, in contrast to all other applications. Loss of keys, hack and other problems - investors will be protected. Protection of investors is the main goal for the SEC.
And the third reason, which is in all current doubts and SEC fears - at CBOE ETF the spot price will be determined by the OTC index. You are aware that the main volume and passes OTC, and not on stock exchanges. Everyone already knows what OTC is, but I will explain. This is when one dude calls another and says: "buddy, I want to pritar Bitki," they go through organizations called OTC Trading Desk. Nobody buys large volumes through stock exchanges - this is shaking the price. Large buyers call in such organizations and ask to find the reverse side of the transaction.
And the most important advantage of using OTC data is that they are real, unlike the exchange. On the stock exchange, you will draw what they want, but hardly anyone will want to carry out an OTC deal for millions of dollars at a loss. The price assessment through OTC inspires confidence.
This may seem like a minor difference to you - but with the next trial it turns out that this difference is huge and the SEC understands this perfectly.
I hope this information has clarified the situation for you a little and removed the embarrassment that has progressed in the ETF sphere in recent days.
If you have any more questions, write - call, we will communicate.
Okay, friends, that's it, and everything will come with profit.
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