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Japanese regulators can approve Crypto ETFs
The approval of a genuine Bitcoin-listed fund (ETF) in the United States, one of the most important cryptic markets in the world, has long been a quixotic dream for the optimists of the cryptosphere. The US Securities and Exchange Commission (SEC) has long opposed the approval of such a financial vehicle, as the entity believes that cryptocurrencies are too nascent (lack of sufficient volume, handling problems, limited surveillance) to support this offer. Case in point, from time to time, the body has or delayed decisions on cryptographic ETF requests or flat-out denied applications.
An application was also denied by Winklevoss Twins and their well-known encrypted startup, Gemini, who indicated that the SEC is quite bad when it comes to a nascent asset class.
However, according to a recent Bloomberg article, which cited those familiar with the issue, the Japanese Financial Services Agency (FSA) could examine Bitcoin's ETF proposals. The anonymous sources said that the SEC equivalent of the Asian nation has "abandoned plans" to allow the encrypted derivatives, such as physically supported futures (Bakkt), to negotiate in Japan, but is instead examining the ETFs.
The deferral by the FSA to allow derivatives may be considered bearish, especially considering the alleged power in bitcoin futures with physical support and similar non-paper instruments. Still, some cynics argue that this regulatory action could be a net positive for this sector, since the cans with tin can believe that paper futures, such as those based on the CME and CBOE, have effectively deflated the value of Bitcoin instead of push it higher.
Also, considering the hype around a real ETF crypto, the apparent change in strategy of the FSA could bear bullish fruits for this budding ecosystem.
The sources said that the relevant Japanese agency is currently doing its utmost to "measure the interest of industry" in bitcoin ETFs, as it seeks to provide investors with an alternative to the aforementioned derivatives, which they could create an environment full of speculations and of little use.
Bloomberg's internal men added that if ETFs were established as the right way to go head-to-head, a government bill will be pushed by the Liberal Democratic Party by March, which means the law could come into force by 2020. The currently hypothetical law will presumably change the modification of Japan's securities legislation, along with the law on payment services, which has become a topic of interest to the enthusiasts of encryption in the nation.
VanEck continues to push for the approval of Bitcoin's ETF in the United States
Although the outlook is much better for Japan-based Bitcoin ETFs, VanEck, a supporter of the crypto industry, has still achieved full approval. As reported previously by Ethereum World News, an official SEC memorandum, dated November 28, 2018, revealed that representatives of VanEck, SolidX and CBOE discussed the Bitcoin issue in a closed-door meeting.
In this rendezvous, representatives of VanEck have advertised a 62-segment slide deck, which has interrupted the application of the ETF in its core, along with the current state of the cryptocurrency market in general. Discussing on this last point, the deck revealed that, like the traditional commodity markets, the value of BTC is "closely linked" to the spot and forward markets, apparently proving that Bitcoin is a "market" of well-functioning capital "- what the SEC is asking for.
However, following a reflection on the meeting, the SEC once again postponed its comment on the request. In a document published by the SEC published on 6 January, the government agency stated that it would exercise its right to postpone the verdict on the application until February 27, 2019. Although this normative judgment was held to be bearish by the naive traders, many analysts and commentators said the delay was expected, citing concerns that the underlying cryptographic market is not ready for the advent of this vehicle.
However, thousands remain awaiting the arrival of the regulated, physically-based, retail-enabled Bitcoin ETF-based Bitcoin, which could trigger adoption. But this is only a hope … for now anyway.
Title Image Courtesy of Grant McCurdy on Unsplash
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