Somebody's not paying enough bribes - SEC shoots down ETF application from Bitcoin again.
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Posted by: LateForLunch ®

01/27/2022, 23:18:52
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If I understand it correctly, an ETF (exchange-traded fund) is a financial instrument which involves buying/selling securities linked to the price of cryptocurrencies (spot trading and futures) like Bitcoin (et al). Short verson is the SEC commission which reviews applications for ETF creation concluded the company trying to get the approval cannot assure investors that they are adequately protected against fraud. 

Interesting that there are people arguing about that  - it concerns a product that has no tangible real-asset value (cryptocurrency is nothing more than a series of coded ones/zeros in a block of digital data) IOW it is not fungible at all as a stand-alone asset.  

I understand that it is complicated and there may be applications of cryptocurrencies that have merit, but it has always seemed like trying to place a value on smoke or a sandcastle. 






Modified by LateForLunch at Thu, Jan 27, 2022, 23:19:08

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I'm not clear on why fraud in Bitcoin would be more likely than in a traded security.
Re: Somebody's not paying enough bribes - SEC shoots down ETF application from Bitcoin again. -- LateForLunch Post Reply Top of thread Forum
Posted by: Russ Walden ®

01/29/2022, 12:20:05
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Russ, I have a question that you might be able to answer. A comment was made that Russia is working on a digital currency with plenty of gold to back it up. Is that possible? If so, could that cause us to go to war with them?
Re: I'm not clear on why fraud in Bitcoin would be more likely than in a traded security. -- Russ Walden Post Reply Top of thread Forum
Posted by: Dee Wee ®

02/04/2022, 15:38:46
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Digital currency may be very different from crypto currency.
Re: Russ, I have a question that you might be able to answer. A comment was made that Russia is working on a digital currency with plenty of gold to back it up. Is that possible? If so, could that cause us to go to war with them? -- Dee Wee Post Reply Top of thread Forum
Posted by: LateForLunch ®

02/05/2022, 05:29:59
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Crypto currency has no fungible assets to "back it up". It is a horse of a different color entirely. It only has the value the group which trades it assigns to it (through a sort of involuntary consensus) on a minute-by-minute basis.  





Modified by LateForLunch at Sat, Feb 05, 2022, 05:30:52

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The article's content was too abstruse for me to easily grasp.
Re: I'm not clear on why fraud in Bitcoin would be more likely than in a traded security. -- Russ Walden Post Reply Top of thread Forum
Posted by: LateForLunch ®

01/29/2022, 17:37:38
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I essentially rescripted the headline, hoping someone could clarify. Clearly, I have more reading to do. I've just recently become comfortable with understanding the whole theory/practice of block-chain valuation and some of the elementary methods of exchange.  

Maybe the SEC is trying to get something in return or trying to find a way for the government to "get its cut". 





Modified by LateForLunch at Sat, Jan 29, 2022, 17:38:58

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