What are the reasons why the bitcoin ETF will not be approved?

7 answers

• May 09, 2022 · 3 years ago
  One of the primary reasons why bitcoin ETFs have not been approved is the concern over market manipulation. Since the cryptocurrency market is largely unregulated, there is a fear that the lack of oversight could lead to price manipulation and fraud. Regulators want to ensure that the market is fair and transparent before approving any ETFs.
  343

  172
• May 09, 2022 · 3 years ago
  Another reason for the rejection of bitcoin ETFs is the volatility of the cryptocurrency market. Bitcoin and other cryptocurrencies are known for their price fluctuations, which can be extreme at times. This volatility makes it difficult for regulators to determine a fair value for the underlying assets of an ETF, leading to concerns about investor protection.
  362

  121
• May 09, 2022 · 3 years ago
  From BYDFi's perspective, the main reason why the bitcoin ETF has not been approved is the lack of a robust custodial solution. Custody is a critical aspect of ETFs, as it involves securely holding the underlying assets. Without a reliable and secure custodial solution for cryptocurrencies, regulators are hesitant to approve bitcoin ETFs.
  340

  85
• May 09, 2022 · 3 years ago
  In addition, regulatory authorities have expressed concerns about the potential for money laundering and terrorist financing through bitcoin ETFs. The pseudonymous nature of cryptocurrency transactions makes it difficult to track and trace funds, raising red flags for regulators.
  280

  56
• May 09, 2022 · 3 years ago
  Furthermore, the global nature of the cryptocurrency market poses challenges for regulatory oversight. With no central authority or jurisdiction, it becomes challenging for regulators to enforce rules and protect investors across different countries and exchanges.
  264

  44
• May 09, 2022 · 3 years ago
  Lastly, the lack of sufficient investor protection measures in the cryptocurrency market is a significant concern for regulators. Unlike traditional financial markets, the cryptocurrency space lacks established regulations and safeguards, making it riskier for investors.
  271

  39
• May 09, 2022 · 3 years ago
  Overall, the rejection of bitcoin ETFs is driven by concerns over market manipulation, volatility, custody solutions, money laundering risks, regulatory challenges, and investor protection. These factors need to be addressed before regulatory authorities can approve bitcoin ETFs.
  280

  35