New York AG Report Deals a Blow to Bitcoin ETFs

“The report finds that virtual asset trading platforms have yet to implement serious efforts to monitor and stop abusive or manipulative trading,” according to the report. “Few platforms seriously restrict, or even monitor, the operation of ‘bots’ or automated algorithmic trading on their venue. On the contrary, most platforms seem to cater to professional, automated traders – with many venues offering special pricing and other features to such traders, leaving retail customers at a disadvantage.”

VanEck, SolidX Patiently Waiting

The SEC recently postponed their decision on a bitcoin ETF until late September. The ETF filing by investment firm VanEck and blockchain technology company SolidX could help reticent investors adopt Bitcoin as a legitimate investment opportunity if approved. Some market observers believe it will be 2019 before a bitcoin ETF is approved in the U.S.

The New York attorney general report also highlighted several conflicts of interest at digital currency brokers, including trading their own accounts, employees trading on their venue and exchanges accepting compensation for listing a digital currency.

“There are often no objective standards for listing particular virtual currencies, leaving serious questions about the elevation of particular virtual currencies over others on certain venues,” according to the report.

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