Hello everyone,
I wasnt too surprised to see the SEC reject those ETF proposal, all with the same old reason: the underlying market is too illiquid and prone to market manipulation ( that are a bad things in SEC view).
I am optimistic on ETF approval for two reasons:
1- Its easy to implement a fixing venue that isnt subject to manipulation, or at least it is less easy to manipulate (well, can you name a single financial assset that is IMMUNE to manipulation? I cant). Two example: an ETF fixing from CBOE (VanEkt , decision pending on Sep. 30, possibly delayed until end of Feb 2019), fixing on the same market used for the future: if a venue isopod for the future fixing I cant see a reason why an ETF cannot fix there.
Second chance is Bakkt (that would be ICEs cryptocurrency maket),this is going to be huge. And ICE surely knows how to avoid market participants not to rig their markets.
2- SEC denial was not unanimous:there were a rogue voter that wanted the ETF approved and said that the SEC was not doing the right job in the best interest of the markets and of them investor.
So for sure I am bullish: every rejected ETF proposal get us one proposal closer to the right one. It will eventually be allowed and the gates of the normies money will eventually get to bitcoin raising the biggest tide seen since 2009.
So, to answer your question: HODL!
MountaineerSN