After renouncing their plans to allow the listing of derivatives and cryptographic instruments such as bitcoin futures in trade due to a point of view these products are excessively susceptible to speculation in December, the Japanese Financial Services Agency (FSA) is now evaluating the exchange-traded funds (ETFs) that track digital assets.
The FSA is currently evaluating the industry's interest in ETFs tracking digital currencies, Bloomberg said, citing "a person familiar with the agency's thinking".
It is estimated that these ETFs in Japan may reignite the appetite of retail investors. The ETF market in Japan is worth $ 335 billion (with approximately 75% owned by the central bank), compared to the $ 3.7 trillion of ETFs in circulation in the United States, according to the report.
So far, European and US regulators have not approved ETFs, citing concerns about price manipulation or the security of underlying cryptographic assets.
Jake Chervinsky, a cryptocurrency commentator and securities lawyer, believes that the US Security and Trade Commission (SEC) will never let a Bitcoin ETF occur. Commenting on the rumors that this instrument could soon become public, Chervinsky said that "a proposed rule change is self-approved if the SEC does not make a decision by the deadline, but in reality, it will never happen".
It will not happen. Https: //t.co/9TAtxZthDV
– Jake Chervinsky (@jchervinsky) 6 January 2019
As for the ETFs themselves, some experts do not even trust them. Tyrone Ross, a managing partner of NobleBridge Wealth, a wealth management and asset planning firm, said he was not a fan of Bitcoin's ETF and did not let his customers "come close". It is certain that cryptocurrencies within an ETF would only confuse people who wear I understand crypto or ETF well to begin with.
And he is not alone. Even Andreas Antonopoulos, a Bitcoin evangelizer and serial entrepreneur, thinks that ETFs are a bad idea and that they "fundamentally violate the underlying principle of peer-to-peer money, in which every user works not through a custodian but has direct control of their own money, because they have direct control of their keys. "He warns that Bitcoin ETF could become a tool to manipulate bitcoin prices.
In the meantime, physically delivered bitcoin futures have been the word of order in the cryptic world lately, with Bakkt and Exchange of Eris LLC should start offering these contracts at the beginning of 2019. In addition, CoinfloorEX (formerly a unit of the British Bitcoin purse Coinfloorand now to be called Money futures and loan exchange – CoinFLEX), intends to offer derivatives of some of the largest cryptocurrencies to Asian retail investors as early as February, Bloomberg reported on Monday.