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Among other things, 2018 has been a difficult year for Bit-to-Exchange (ETF) applications. The regulatory entities that oversee these proposals quickly canceled the quixotic dreams of the cryptographic industry, denying the applications to the right and left, without the exclusion of blows. And, interestingly, it seems that the thematic development of this sector will continue in 2019, unfortunately enough.
Bloomberg Hypes Up Bitcoin ETF, then Regulators Quash Hopes
Last week, Bloomberg, citing those familiar with the issue, revealed that the Financial Services Agency (FSA) of Japan – the SEC equivalent of the nation – could try to allow Bitcoin ETF applications. Anonymous sources said the FSA has "abandoned plans" to allow encrypted derivatives, such as physically backed futures (Bakkt), to negotiate in Japan, but is instead looking into ETFs.
Those familiar have said that the Japanese agency is currently doing its utmost to "assess the interest of industry" in this offer and submit a proposal on the subject by March if the application was sufficient.
However, speaking with Bitcoin.com, a representative of the organization said that these plans are not in place. An FSA spokesperson noted:
"There is no fact that we are considering approving ETFs that currently track crypto-assets … at the moment we are not considering approving them."
The anonymous FSA representative added that his organization is not examining Bitcoin derivatives. Citing the reasoning for this heartbreaking comment, which came straight out of the left, it was claimed that products based on cryptographic assets are neither constructive nor socially significant. It has been added that there is currently "no need" for encrypted derivatives.
Not all hope is lost
Despite this updated development, there is still hope for this alternative investment vehicle. Bitwise Asset Management, a cryptographic index provider based in San Francisco, recently filed an application with the SEC in a first for the 2019 fiscal year.
Through the medium of a press release, Bitwise explained that he had submitted a module for the first phase of the Bitwise Bitcoin ETF, which would have "captured the full value of an investment in BTC". According to the company's statement, Bitwise's product "differs" from previous proposals, as the company intends to rely on third-party custodians and aggregated data to quell the SEC's problems with nascent market-driven vehicles.
More recently, Winklevii (Winklevoss Twins) – Gemini co-founders, Facebook's potential founders, Bitcoin's longtime "HODLers", Harvard and Olympic athletes – said they were busy seeing an encrypted ETF .
Speaking in Fortune's "The Ledger," advocates of long-standing cryptography have explained that Gemini intends to see "[a Bitcoin ETF] through "even if a real regulatory ban requires another six years.
Twin Cameron also explained that the SEC's hesitation to accept such a vehicle is actually well received, pointing out that since a Bitcoin ETF will be the first of many encrypted products, "we need to get it right".
