What’s up crypto people!
I’m sure many of you have seen the news flying around and the dip in the price of BTC due to the rejection the Winklevoss brothers (they are the owners of Gemini exchange) received from SEC (Securities and Exchange Commission), so I wanted to share some light in a brief but informative article about the news what it means and stands for so everybody knows exactly what it means for us.
ETF – Exchange Traded fund, this is a marketable security which tracks an index such as a commodity, bonds, or a basket of assets. It is not like mutual funds, so ETF trades exactly like a stock on a stock exchange.
The SEC stated “it has not met it’s burden under the SEC act” (https://www.sec.gov/answers/about-lawsshtml.html), this is the second time the Wonklvoss brothers have tried to pull this application and have been refused and this time 1 out of the 3 members refused it, I wont leave her name as I am sure she is already not having a great time but i’m sure you can find the info for yourself if you are raging haha. This is the second time they have been rejected meaning they don’t have everything in place quiet just yet. But as much as I don’t want to agree with the SECs decision I understand it completely, what they basically said is that they couldn’t establish a means of compliance that the bitcoin market is not subject to fraud and manipulation.
Look, the purposed of me initially creating this website was to educate professionals and newcomers alike with trustable news and not just my first impressions but opinions which come with research and experience, so without trying to bad mouth other media sources as there are some good ones out there, almost over 90% of them will throw together a compelling article for you with a click bait title so you go on there site and just get them the views, clicks, referable links etc. But let me tell you a few things about this piece of news and what most people will miss or just bee too scared to say.
This news didn’t really put people off as BTC saw a 3% dump and has since yesterday bounced back up and still has a bullish prospective on a technical standpoint.
The Winklevoss brothers are not the only ones who have made this type of application and individual called Van Eck did also and the SEC have made 0 comments about his application, take that as you will, I quess it’s just in process and can’t be discussed or are they saving the news for another day? If the SEC approve either of their applications then as ETF shareholders they will be entitled to a proportion of the profits, such as earned interest or dividends paid, and they may get a residual value in case the fund is liquidated. The ownership of the fund can easily be bought, sold or transferred in much the same way as shares of stock, since ETF shares are traded on public stock exchanges.
CBOE’s ETF is the real one we want to keep an eye out for!
Advantages of owning an ETF are as follows; investors get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share (there are no minimum deposit requirements). Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you’d pay on any regular order.
The SEC made a number of responses about the reason behind the decision, but the basic idea is that most of the exchanges of BTC is done not in the USA, including most of the exchanges themselves not being in the USA. I strongly suggest you read my article about how BTC is bought by the big players in the article before this one, here is the link:
Anyway, this is turning out to be a bit longer than I wanted it to as it’s really a small piece of news and as mentioned, has been blown out of proportion by articles and thus created a dump in BTC and as always other alts 😭. lol (fucking BTC anchor)
If you have not heard about the crypto experiment then you can find out about it here:
PS: You can play the ETHEREUM LOTTO on this site on the top right, so if your feeling lucky you can play it straight through your metamask GOOD LUCK.