“You wonder why the SEC has doubts about ETF approval for bitcoin?”

Compound Finance’s General Counsel, Jake Chervinsky, has expressed a personal opinion on the recent fall of Bitcoin and SEC concerns about cryptocurrency ETFs.

“Bitcoin in a matter of hours fell by 20% and no one can name an objective reason. At the same time, offshore unregulated margin trading platforms made good money on such a movement. Perhaps the elimination at such sites was the first cause of the fall. And after that you still wonder why the SEC has doubts? ”, – writes he is on his page on the social network Twitter.

A stock exchange investment fund (ETF) allows you to trade in the price of an asset, while not owning the asset itself. Bitcoin ETFs are a purely speculative tool that does not have any additional difficulties associated with the purchase and storage of cryptocurrencies. The approval of the ETF for bitcoin will attract new investors who are already used to working with the infrastructure of traditional markets and do not want to use cryptocurrency exchanges for any reason.

Cherwinski notes that at the moment, instruments of a similar plan, which are already present in traditional markets, are not in high demand, since most of the trading is still taking place in offshore areas. In addition, according to the legal adviser, the trading platforms mentioned by him profit from the volatility of the rates, which leads to an increase in volumes and liquidation. The owners of such sites are not interested in a “calm” market.

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“I do not have concrete evidence of manipulation. The problem voiced by the SEC is the inability to prove whether the manipulations were actually or not. In traditional markets, the situation is different, because the regulator can rely on exchange standards and analyze trading data, ”Chervinsky says.

“Some experts suggest that the launch of Bakkt was already priced in, and the collapse occurred on a“ buy by rumor, sell on the news ”basis. Others have noted a sharp decrease in hashrate. Still others are trying to build graphical figures using technical analysis. How does it all look in the eyes of the SEC? Let’s try to tell them: “Don’t worry. This is not a manipulation; we can all explain it with a technical analysis. ”

Recall that this week the Bitcoin rate plummeted below $ 8,000. Now the first cryptocurrency is trading around $ 8,100.