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Expert: Fund (ETF) on Bitcoin basis of CBOE is not approved

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Bryan Courchesne is the managing director of Digital Asset Investment Management (DAIM). Courchesne has now commented on the Bitcoin exchange-traded funds (ETFs) in an interview. He assumed that the US Securities and Exchange Commission (SEC) did not approve the request of the Chicago Options Exchange CBOE. He cited concerns over the manipulation of the underlying Bitcoin market as a reason for this.

The CBOE had made the request in June. The SEC has recently adjourned the decision. The current date of the decision is 30 September 2018. Until then, it may extend the deadline by February of the following year. Then, however, the SEC must finally reject or approve the application.

Bryan Courchesne from Digital Asset Investment Management has now commented on the issue as part of an interview. Digital Asset Investment Management is a registered investment adviser for crypto assets.

Much capital needed to invest in the CBOE Bitcoin ETF

The CBOE's application indicates an exchange-traded fund (ETF) out, which consists of shares of 25 Bitcoin each. Each bitcoin has an assumed price of $ 8,000. This will cost each share about $ 200,000. The ETF can only be bought in whole units. However, the price of $ 200,000 per share is likely to be beyond the reach of most retail investors.

Accordingly, Courchesne also believed that the ETF targets primarily institutional investors and other major investors. At the same time, the CBOE is so confident that the SEC will not be forced to focus on protecting small investors, Courchesne said.

The view of many retail investors that adequate retention would attract institutional investors Courchesne not. Given the volatility and risk, many fund managers would probably wait and see what the time is.

Courchesne further stated that it does not expect the SEC to approve the CBOE's application. He said:

“I believe that the ETF is not approved. The SEC had already expressed its concerns about manipulation of the underlying market in rejecting the application of the Winklevoss twins. There has been no change in the industry, which reduces this risk. In addition, it's hard to prove that the Bitcoin market is tamper-proof. “

He continued:

” If the SEC rejects the application it probably a sell-out. But I do not think it will take a long time for the industry to get over it and find new optimism and acceptance. “

Concluding, Courchesne said he assumed there would be more individuality in the future Investment accounts for cryptocurrencies will give. This would make it easier for retail investors to invest in cryptocurrencies.

Sources: Blokt.com, Bloomberg, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/experte-fonds-etf-auf-bitcoin-basis-der-cboe-wird-nicht-genehmigt/

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