Asset manager: sponsors need to do better job to prove bitcoin ETF viability

Author: Olly Jackson | Published: 6 Sep 2018

The Securities and Exchange Commission’s (SEC) rejection of nine bitcoin exchange traded funds (ETFs) signals the market needs to make a number of changes if one is to be approved soon.

But the blame lies mostly with potential sponsors rather than with the regulator, says John Hyland, global head of exchange traded products at Bitwise Asset Management.

"It is not up to the SEC to prove that there is a problem with bitcoin," he said. "It is up to the sponsors to show that a bitcoin ETF is within the bounds of acceptable financial market behaviour and in my mind so far, they have not done a good job of showing that is true."

Background

The SEC reiterated in Proshares’ application that this doesn’t mean an outright rejection of bitcoin ETFs themselves, but rather that the current market doesn’t sufficiently protect against fraudulent and manipulative acts and practices. The fact that...