SEC Member to Criticize SEC

Hester Pierce said "still smothering ETFs with personalized attention as if they were infants" and showed support for Winklevoss's ETF
03 June 2019   736

Commissioner for the Securities and Exchange Commission of the United States (SEC) Hester Pierce said that her office was too cautious about the approval of exchange-traded funds (ETF) based on cryptocurrency, and called for speeding up the process. Reports about it Financial Times.

Last month, Pierce has already said that the SEC "still smothering ETFs with personalized attention as if they were infants."

At the moment, asset managers who intend to launch an ETF must apply in accordance with the Investment Company Act (1940), which, according to many experts, is quite strict regarding cryptocurrency funds.

Note that Pierce has again showed her support the Bitcoin-ETF from the Winklevoss brothers, whom the SEC refused last summer.

In May, the agency once again postponed consideration of applications for the launch of Bitcoin-ETF from Bitwise Asset Management and VanEck / SolidX.

Despite this, the NYSE Arca recently submitted to the SEC a request to change the rules for listing securities from an investment bitcoin trust managed by Wilshire Phoenix Funds.

This is not the only company that intends to launch Bitcoin-ETF on the NYSE Arca. On May 9, the SEC received an application from Crescent Crypto Index Services LLC to create an index fund, which should track not only the quotes of the first cryptocurrency, but also Ethereum.

BTC Futures Didn't Collapse Market in 2017, - CME

According to the managing director of CME Group, they "didn’t have that wherewithal, that ability to drive that impact"
14 November 2019   131

Tim McCourt, managing director of CME Group, has denied the widespread theory that the alleged launch of regulated bitcoin futures caused a market crash after the 2017 rally.

A lot of times, people ask us, ‘Did futures cause the price to decline from $20,000 to $3,000?’ And the answer is ‘no,’.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Group

He recalled that at first the turnover of bitcoin futures on CME was 1,100 contracts, which is equivalent to 5300-5500 BTC or about $ 100 million at prices at the end of 2017.

There is no way over that period of time, given the size of the Bitcoin market, in terms of spot trading or the ability to mine Bitcoin, that futures could cause that impact. These things are governed by the law of supply and demand. We just didn’t have that wherewithal, that ability to drive that impact.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Group

Chicago Mercantile Exchange (CME) Bitcoin Futures was launched on December 18, 2017. A day earlier, the price of bitcoin reached a historic high in the region of $ 20,000, but soon plummeted.

Despite the sharp change of mood and the bear market, the volume of bitcoin futures trading on CME grew - by May of this year, the average daily turnover reached 13,600 contracts, corresponding to 68,000 BTC or $ 515 million at the exchange rate at that time.

We certainly play a role in the price discovery because people can freely express their demand to buy and sell at CME and transact with one another, but I wouldn’t necessarily say we are impacting price.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Group

Among other things, a CME representative said that he is an ardent supporter of Bitcoin ETF and hopes to see such products on the market soon.

ETF providers and asset managers are our customers at CME. They use our futures products to create other ETFs, to hedge structure projects, and we’re certainly trying to enable them to do the same type of strategy on Bitcoin. We want to make sure they have the risk-management tools they need to be successful in managing their risk. We’re working with them to make sure they have what they need for trying to introduce products such as an ETF.
 

Tim McCourt

Global head of equity index and alternative investment products, CME Grou

Recently, Christopher Giancarlo, the former head of the Commodity Exchange Commodity Trading Commission (CFTC), said recently that the launch of the CME Bitcoin Futures was a targeted action by the Donald Trump administration to eliminate the bubble in the cryptocurrency market.