VanEck's Bitcoin Futures ETF Effort Dealt Blow By SEC
Last month, New York-based money manager VanEck had filed to create the VanEck Vectors Bitcoin Strategy ETF, which would be used to invest in "U.S. exchange-traded bitcoin-linked derivative instruments."
Yet a new letter addressed to the SEC's Division of Investment Management, VanEck assistant general counsel Matthew Babinsky indicates that officials at the agency won't consider reviewing the firm's request because of the nascent state of the derivatives market for cryptocurrencies like bitcoin. The letter explains:
"The Trust notes that on a call with the Staff on September 20, 2017, the Staff expressed the view that it is the Commission’s policy to not review a registration statement for a fund where the underlying instruments in which the fund intends to primarily invest are not yet available. The Staff requested that the Trust withdraw the Amendment until such time as the underlying instruments in which the Fund intends to primarily invest (i.e., bitcoin futures contracts) become available for investment."
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IMF's Lagarde: Ignoring Cryptocurrencies 'May Not Be Wise'
The head of the International Monetary Fund (IMF), Christine Lagarde, believes that cryptocurrencies may give traditional government-issued ones a "run for their money." Speaking at a conference in London, Lagarde told attendees that she thinks "it may not be wise to dismiss virtual currencies." Notably, she outlined possible scenarios in which a country – particularly those with "weak institutions and unstable national currencies" might actually embrace one more directly.
"So in many ways, virtual currencies might just give existing currencies and monetary policy a run for their money. The best response by central bankers is to continue running effective monetary policy while being open to fresh ideas and new demands, as economies evolve."
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SEC Charges Shady ICO Operator With Fraud
The Securities and Exchange Commission on Friday charged businessman Maksim Zaslavskiy with fraudulently running two initial coin offerings (ICOs), a form of largely unregulated investment vehicle in which companies take investors’ cash or cryptocurrency in exchange for “crypto-tokens.” The SEC has warned for months ICOs may work as a way for scammers to illegally dodge the strict rules placed on regular investments. In a statement, the agency alleged Zaslavskiy did just that:
"The SEC alleges that Maksim Zaslavskiy and his companies have been selling unregistered securities, and the digital tokens or coins being peddled don’t really exist. According to the SEC’s complaint, investors in REcoin Group Foundation and DRC World (also known as Diamond Reserve Club) have been told they can expect sizeable returns from the companies’ operations when neither has any real operations."
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US State Department to Host Blockchain Forum on October 10
The US State Department will host a forum on Blockchain on Oct. 10. The event will take place in George C. Marshall Center, Washington, DC where various offices from the State Department and other parts of the US government, as well as those from the private sector, will join the one-day workshop. The mission of the event is to explore the policy and potential applications, according to the group:
"Explore both the policy implications and potential applications of the tech within the context of US diplomatic efforts."
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Germany’s Biggest Bitcoin Marketplace to Integrate Ethereum Trading
On September 27, the Bitcoin.de development team revealed in an email to its clients that it is set to add Ethereum trading in the upcoming weeks.
In an interview with BitcoinBlog.de, a local bitcoin-focused news publication, an employee of Bitcoin.de stated that the company has come to a decision to integrate Ethereum due to the overall rise in demand toward alternative cryptocurrencies (altcoins.) A rough translation of the statement read:
“Initially, there was no strong demand from the users toward altcoins apart from Bitcoin. For a long time, the second largest cryptocurrency behind bitcoin was Litecoin, prior to the launch of Ethereum. Upon the emerge of Ethereum, the demand toward altcoins and cryptocurrencies in general surged.”
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Bitcoin Prices Skyrocket to $7200 on Zimbabwean Exchange During Economic Turmoil
Zimbabweans are dealing with an economic crisis at the moment, as the country is seeing a wave of food and fuel shortages across the country. The nations’ currency is practically worthless, and Zimbabwe’s central bank is draining the reserves of individual forex markets.
This is leading the country’s citizens towards finding alternative stores of value like hoarding gasoline, food and medical supplies, certain commodities, and now the digital asset bitcoin. For instance, the country’s lone bitcoin exchange Bitcoinfundi has seen bitcoin trades at an 85 percent premium. Earlier this week, one bitcoin reached a high of $7200 on the trading platform and the current price per BTC on the exchange is $6150.
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