SEC Not Approving Bitcoin ETF for Price Manipulation Fears while Stock Market & Oil in Free Fall

To date the US Securities and Exchange Commission (SEC) has rejected several Bitcoin-based exchange-traded fund (ETF) proposals, the latest one was shot down just last month with no pending proposal left for approval anymore.

The primary reason behind these rejections has been “fraudulent and manipulative” acts in the industry.

However, as we have been seeing in the past few weeks, the stock market has been experiencing its worst fall since the 2008 financial crisis. Since the weekend, oil prices have been in free fall as well.

“3x Oil ETN dumps ~52% in a day. No regulator can ever again tell me that a Bitcoin ETF may be too volatile or manipulated. Oil, the single most traded commodity, tumbled 30% as a result of a weekend decision from a small non-sovereign/intergovernmental organization (OPEC),” said Gabor Gurbacs, digital asset strategist at VanEck.

A bitcoin ETF would allow investors to invest in the digital currency without having to purchase or store it.

Earlier this year, ShapeShift CEO Erik Voorhees also called for the need for a bitcoin ETF in the light of 41% premium on Grayscale Bitcoin Trust (GBTC).

“Is it fair to say that premium is the cost the SEC has imposed on investors by coercively preventing an ETF from coming to market? Which party is being helped by them, exactly?” said Voorhees at that time.

According to Nate Geraci, host of ETF Prime, in the absence of bitcoin ETF, institutional or accredited investors can “profit from this premium at the expense of retail investors.”

Impeding Innovation

In a recent conversation on CNBC, Chris Hempstead, the director of institutional business development at ETF and hedge fund provider IndexIQ said the Bitcoin ETF has a bigger chance of approval if the retail demand for the product grows.

“I doubt very heavily that it’s going to be the last straw. I think everyone will continue to listen to the feedback and the notes from the SEC, what their comments are, and they will continue to address it,” said Hempstead.

When investor and market demand will push, the SEC will have another look and have different considerations. However, he is not expecting any “significant changes” in SEC’s decisions in the near future at least.

Bitcoin enthusiast Hodl wave feels it’s good that the bitcoin ETF isn’t approved yet as there’s “code to write, infrastructure to build, and sats to stack.”

“Let the Hodler base and maturing market take us to $250k / BTC and let the boomers handle the next 10x,” said Hodl Wave.

In the light of the Wilshire Phoenix’s Bitcoin ETF rejection, SEC commissioner Hester Peirce also published a dissenting statement where she slammed the SEC for its biased treatment of the bitcoin-related products.

Hester whose term at SEC is expiring on June 5 said this conservative approach “impedes innovation in this country and threatens to drive entrepreneurs, and the opportunities they create, to other jurisdictions.”

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Author: AnTy

RSK Parent Launches ‘Crucial’ Interoperability Bridge To Connect Bitcoin And Ethereum Blockchains

IOV Labs, the parent company of the Bitcoin-based contract platform RSK, has released a new token bridge for Ethereum.

The announcement was made on Wednesday, reported by Coindesk, and mentions that the bridge will permit clients to,

“Cross RSK and Ethereum-based digital assets, ERC-20 tokens included, across protocols.” per Gibraltar-based developer IOV Labs. And “When a user transfers tokens, the bridge’s smart contract locks the originals and mints a corresponding amount of new tokens on the other chain.”

This system allows Ethereum-based tokens to be transformed into RRC20 tokens, which are RSK’s, which can conversely be turned into ERC777 tokens from Ethereum.

Interoperability Protocols Make Operations on Different Blockchains Easier

Interoperability protocols are known for making projects less complicated to work on individual blockchains. Apps or dapps that are decentralized can accommodate to a larger variety of clients. If not using dapps, these users would be stuck in networks that are closed. Besides, dapps help projects leverage some specific characteristic of blockchains at the same time. This is what the RSK strategist for IOV Labs, Adrian Eidelman, said about the RSK interoperability bridge:

“Interoperability has been a cornerstone of the RSK vision from the start. We believe being able to offer Bitcoin’s benefits to Ethereum users and to connect these respective developer communities is a crucial step for the blockchain ecosystem as a whole.”

Wanchain’s 2018 Token Bridge for BTC and ETH

The RSK interoperability bridge is not the only one of its kind, as Wanchain released a token bridge between Bitcoin and Ethereum back in 2018. However, Eidelman explained that Wanchain acts as an intermediary between the blockchains, whereas RSK actually combines the networks and allows the leverage of strengths for both ecosystems. The Money on Chain Bitcoin protocol utilizes the RSK bridge for navigating the stablecoins onto the Ether ecosystem.

Its co-founder, Max Carjuzaa, mentioned interoperability is going to combine the global recognition and security of Bitcoin with Ethereum’s vibrant DeFi ecosystem. In September 2019, IOV Labs mentioned something about integrating RSK tokens into Taringa, the company’s newly acquired social media network. More information about the new interoperability bridge will be launched soon, said an IOV Labs spokesperson.

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Author: Oana Ularu