📰 Weekly Crypto Meta: CBOE Withdraws Proposal for VanEck-SolidX Bitcoin ETF, Researcher Threatened by XRP Army, Binance KYC Data Stolen and more
CBOE Has Withdrawn The Vaneck/Solidx Bitcoin ETF Proposal
The history of Bitcoin ETF should have been completely resolved this winter, but the US shutdown and the uncertain situation in the crypto market seem to prevent companies from entering the market with a new product.
This week, the US Securities and Exchange Commission (SEC) announced on Wednesday that the CBOE had decided to withdraw its request for a "physical" Bitcoin-ETF. The Commission did not give the reason for the withdrawal of the application, so it remains only to assume the strategy of CBOE regarding the Bitcoin ETF. Analysts are confident that this decision has been made because of the US shutdown. Later, however, it turned out that the Chicago Exchange would re-apply for the opening of the crypto exchange-traded fund.
Some experts considered that the withdrawal of the application provoked negative trends in the market. In fact, one cannot say for sure how influential this news may be regarding the current situation in the crypto market. Of course, some announces of new cryptocurrency-related products were bullish this summer, however, it was the last hour when news about ETF could play as something positive. Especially at the moment when consideration of ETF applications has been postponed until February 27, 2019, public interest in the topic has decreased.
VanEck and Bitcoin ETF: The Story Will Continue After The US Shutdown
Nevertheless, some official version of what will happen next with Bitcoin ETF expressed. As VanEck CEO Jan Van Eck told CNBC:
"So, you know the SEC is affected by the shutdown…we were engaged in discussions with the SEC about the bitcoin-related issues, custody, market manipulation, prices, and that had to stop. And so, instead of trying to slip through or something, we just had the application pulled and we will re-file and re-engage in the discussions when the SEC gets going again"
It can also be considered that the company most likely expected a refusal from the Commission and decided not to make bad advertising for itself. Moreover, so far there is no practice according to which cryptocurrency ETFs have been approved, and the issue is still very fresh, while the Commission is vigilant against such criteria as secure storage of assets and market manipulations. Now there is a strong chance that the application will be submitted again later.
Bitwise Still Fights for Bitcoin ETF, Revealing New Details On The Matter
However, the attitudes of various companies and financial institutions regarding the proposed launch of Bitcoin ETF are different. NYSE Arca has published Bitwise's Bitcoin ETF documentation, and what we know now is that the company noted that it differs from other similar initiatives, since it involves the participation of a qualified custodian. It is not known whether this will satisfy the regulator, or whether Bitwise will develop an alternative strategy aimed at meeting the requirements of the SEC.
Market manipulations are still a problematic place to launch a new crypto product. In fact, we understand that these manipulations can not be controlled. On the other hand, working with cryptocurrencies in a traditional field in itself looks quite inappropriate, as it causes many contradictions. Bitwise, however, argues that the proposed index, which determines the price of the asset, will be formed on the basis of data from a large number of exchanges, futures markets, both spot and physical, and that this will prevent market manipulations.
Bakkt Publishes Some New Details On Its Upcoming Bitcoin Product
At the same time, Bakkt cryptocurrency platform does not let itself be forgotten. Bakkt has published new details of upcoming Bitcoin futures, revealing commission issues and slot restrictions for investors. For example, the minimum allowable price fluctuation will be estimated at $2.50 per 1 BTC, but for bigger deals this number can be increased.
The launch of Bakkt, although not a revolutionary idea from the point of view of the SEC, nevertheless, agitates the market due to some economic consequences. So, the giants of the modern economy have already supported this platform, and its products promise to be widespread. Recently it also became known that in the process of waiting for the CFTC's futures approval, the company announced the recruitment of full-time employees team.
KYC data of Bittrex, Poloniex, Bitfinex and Binance Users Can Be Bought on The Dark Net
Probably, while agreeing to give your data for the security of the service, refusing the cryptocurrency anonymity, and then finding your data in the dark web, you fall into the trap, and this is really unpleasant.
The community noted that hacker under the nickname ExploitDOT tried to sell the data of users of such platforms as Bittrex, Poloniex, Bitfinex and Binance. Data packages were offered at quite reasonable prices, and it is still unknown whether such offers are common or if someone has already purchased packages of KYC data.
It is not yet reported whether this data is valid or not. Someone has also published message, according to which a certain buyer managed to acquire authentic data belonging to 3 Binance users. Some have linked this proposal with the recent hack of Cryptopia exchange, however, the illegal offer also could be the reason for toughening the verification of users on cryptocurrency platforms.
CEO Of The Hong Kong Stock Exchange (HKEX) Expressed An Informal Denial Of Ipos For Mining Firms
Reports of Bitmain's IPO caused some excitement among the crypto community, because it could mean rehabilitating the company in a falling market. However, HKEX CEO Charles Li Xiaojia said that companies seeking listing on the stock exchange should have a “sustainable” business model. As it becomes clear, neither cryptocurrency nor mining can have a stable model at the moment. Xiaojia said:
The basic principle of an IPO on HKEX is suitability for listing. Is the business model offered by the listed company suitable for investors <...>? For example, in the past, company earned billions of dollars through business A, but suddenly said that she would be in business B, but there was no productivity. Or business model B is better, then I feel that business model A, which you brought to the market, is not sustainable. Then, you can still do this business, can you make this money?"
Besides Bitmain, another mining-related companies, Canaan and Ebang, have all filed to list on the HKEX, but none has received approval to the present moment. Therefore, either companies will seek refuge in other forms of investment, or change their strategy for interacting with the local market.
The British FCA Has Proposed To Classify Cryptoactives Into Three Categories
The Financial Conduct Authority (FCA), UK financial regulatory, proposed to classify cryptocurrencies into three categories and apply existing legal norms to them. These three groups includes security tokens, which will be regulated as securities, utility tokens, which will be controlled in the area of electronic money, and exchange cryptocurrencies, such as Bitcoin, for example, which will not be regulated by the Britain FCA.
The idea of not creating a separate regulation for cryptocurrencies, and classing digital assets as ordinary, traditional assets, probably, will help to avoid some contradictions in the law. This concept is not new, and from time to time some governments recognize some cryptocurrencies as securities in order to regulate them more easily. In general, cryptocurrencies are now partially controlled as means of payment, as a commodity, as securities and derivatives.
The Study Shows: XRP Market Cap May Be Overstated by Billions
One of the high-profile investigations of the week concerns XRP, the second cryptocurrency by market capitalization, which has a fairly aggressive marketing campaign. According to the report provided by the analytical company Messari, the market capitalization of XRP may be overstated by more than $6 billion.
In short, part of the presumably active funds that make up the XRP market capitalization are "illegally" assumed in market cap. A significant portion of the XRP is reserved by Jed McCaleb, as well as the tokens sold through XRP II, the cash operator Ripple. Messari noticed:
"In reality, this estimate may prove to be conservative, as they belie XRP trading volumes which have consistently fallen well below that of EOS and Litecoin, two cryptoassets whose current referenced market caps are a mere 17% and 15% of XRP’s, respectively. In addition, we believe the actual amount of ‘restricted’ XRP in distributions to investors, banking partners, and team member may be significantly higher than our initial estimates reflect"
It is worth noting that the calculations in this study are approximate.
Researcher Who Reported on Overestimated XRP Volumes Has Been Threatened By Ripple
A member of the research agency Messari, who whore an article revealing the overestimated volumes of XRP reported on threats. According to Ryan Selkis, he is threatened by the “XRP army”.
Someone just called me from a Nashville number and recited my wife’s birthday to me. Then hung up.@bgarlinghouse these are the type of animals you and your fucking company enable.
Ryan Selkis (@twobitidiot) January 24, 2019
War.
I want @Ripple @bgarlinghouse @MonicaLongSF @CoryTV @JoelKatz @warpaul to denounce any $xrp community threats against my family. I’m going to the fbi and local police after THREE calls. Ensuring our family doesn’t get swatted.
Ryan Selkis (@twobitidiot) January 25, 2019
I’m not going home until it’s publicly stated.
According to Messari, the capitalization of XRP is overestimated by about $6 billion, which is a blow to Ripple's reputation. Although the data did not receive universal confirmation, it has been quickly noticed, and caused threats to the author. It is not known whether these aggressive people are controlled or not. The data on the threats cannot be confirmed for obvious reasons.
IMF: Blockchain Island Malta Puts its Economic in Danger Because of Crypto
Finally, this week the IMF made a rather curious statement, according to which the growth of the blockchain sector in Malta poses a "significant risk" for the country's financial system. Recall that Malta is one of the centers for many cryptocurrency companies and startups that have more simplified working conditions here.
At the moment, the legal system of Malta is attractive for many crypto-related companies. However, the rational thing in the IMF' words is that the more cryptocurrency flows in here, the greater the percentage of money laundering proceedings, for example. The risk can really be significant in some cases, and this is probably the reason why the IMF made a warning aimed to blockchain island.
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