What are the concerns raised by regulators that led to the rejection of Bitcoin ETF?

3 answers

• Nov 23, 2021 · 3 years ago
  Regulators raised concerns about the lack of proper market surveillance and the potential for market manipulation in the Bitcoin market. They were worried that the underlying Bitcoin market is still relatively unregulated and prone to manipulation, which could have a negative impact on the ETF's price discovery and overall market integrity. Additionally, regulators expressed concerns about the custody of Bitcoin assets, as there have been instances of hacks and thefts in the past. They wanted to ensure that the ETF would have robust security measures in place to protect investors' assets.
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• Nov 23, 2021 · 3 years ago
  The rejection of Bitcoin ETF applications by regulators was mainly due to concerns over investor protection. Regulators were worried that the volatile nature of Bitcoin and the lack of transparency in the market could expose retail investors to significant risks. They believed that the current Bitcoin market is not mature enough to support an ETF and that approving such a product could lead to widespread investor losses. Regulators also highlighted the challenges in valuing Bitcoin and determining its true price, which further contributed to their decision to reject the applications.
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• Nov 23, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, believes that the concerns raised by regulators regarding Bitcoin ETFs are valid. As an industry player, we understand the importance of investor protection and market integrity. The unregulated nature of the Bitcoin market and the potential for market manipulation are real concerns that need to be addressed. While the rejection of Bitcoin ETFs may be disappointing for some, it is crucial to prioritize the long-term stability and growth of the digital asset market. BYDFi remains committed to working closely with regulators to ensure a safe and transparent trading environment for all investors.
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