The Winklevoss brothers’ Bitcoin ETF was rejected by SEC last week.Bitcoin is theoretically a decentralized digital asset where no single authority can control over it.The underlying technology is a ledger system nobody can tamper with.In plain English, Bitcoin’s ledger is like your bank statement, except nobody (not even the bank) can manipulate your bank statement.Similar ledger systems have been categorized as blockchain technologies.The Bitcoin ETF aims to create a fund tracking bitcoin price and open to the public.By reading the rulings, we found SEC’s 3 main concerns over Bitcoin ETF by SEC commenters.Since bitcoin is digital asset, it can be sent over the internet anywhere in the world.This convenience encouraged the creation of many Bitcoin exchanges where members can trade Bitcoin 24/7.For Bitcoin ETF to pass, the exchange must have surveillance-sharing agreements with these Bitcoin exchanges with significant market share.But, most Bitcoin exchanges are not regulated or audited.

So, SEC doesn’t think the exchange can enter surveillance-sharing agreements with these significant Bitcoin markets to prevent frauds and manipulative practices, such as front-running, wash trades, or trading with insufficient funds.The lack of oversight, transparency or fairness was the most mentioned concern by SEC.It was claimed that since Bitcoin trading are subject to little regulatory oversight, the existing KYC laws can be easily bypassed.Exchanges with most daily trading volume are outside the U.S.These exchanges are influential to Bitcoin’s price discovery process.But, because these exchanges are located outside of U.S.jurisdiction, law enforcement would be difficult.One SEC commenter proposed that the nature of U.S.regulation will further drive Bitcoin trading away from U.S.For example, no U.S.Bitcoin exchanges yet offers products like fee-free trading, margin trading or options.Another commenter also mentioned that some Bitcoin traders and owners don’t want to trade in a well-regulated environment for various reasons like tax evasion.SEC believes that it would be hard to mitigate manipulation from dominant Bitcoin exchanges outside of the country.

The lack of regulation increases the incentives for market price manipulation, putting investors at risk.The proposal suggested that the net asset value of the Bitcoin ETF will be calculated based on the clearing price from the Gemini Exchange, a U.S.based Bitcoin exchange subjected to substantive regulation.However, the Gemini Exchange usually possesses less than 10% of Bitcoin trading volume in U.S.. Some commenters believe there are more robust ways to value the ETF than using the spot price of a single Bitcoin exchange, such as the Gemini Exchange.On the other hand, if the ETF is valued based on aggregated prices from multiple Bitcoin exchanges in the world, it would be surprising if illegal and manipulative practices do not occur, as one commenter noted.There were many unanswered concerns on how to track the ETF’s value.So, this is our summary of the ruling.If you want to see the original document, go here.About Latest Posts Latest posts by Dean (see all) My Long Awaited Altcoin Trading Article: STOP BUYING ALTCOINS THEY ARE IN A MASSIVE BUBBLE Orocrypt ICO: Own a share of a gold backed cryptocurrency network Wagerr Decentralized Sportsbook: ICO Crowdsale; ‘Be The House’ Oracle Opportunities The price of any currency or asset goes both up and down over time – and Bitcoin is no different.

If you have developed an interest in Bitcoin as an investment, rather than just a way to make payments and avoid feeding the sins of the banking industry, you should therefore consider looking at ways to make a prifit from a falling bitcoin price as well as increases in value.preev bitcoin gbpBuy and hold (or hodl as many bitcoiners say) can be good sometimes, but it can’t be the best option 100% of the time – sometimes you will need to ‘go short’ – effectively betting on the price going down.build bitcoin faucetSee Also: How To Make a Profit Trading Bitcoin There are various different ways that you can ‘go short’.ethereum address balanceOf course if you own a large stash of BTC then you can just sell a few in the hope of buying them back later at a cheaper price.bitcoin anonymous wallet

This is the easiest way, but there are other methods that can potentially give you a larger profit – although be warned that this usually means they will also give you a bigger loss if you are wrong and the price goes up.ethereum limitHere are three of the most popular answers to the question – how to short bitcoin?bitcoin baixaMargin trading means that you borrow money in order to make a trade.For example, if you have 1 bitcoin you would like to use to bet on the price going down, you may be able to use that 1 BTC to borrow 10 btc at 1:10 leverage.This means you will either make 10 times the profit or 10 times the loss.Check out the video below for a super simply guide to shorting btc using Bitfinex A futures contract gives its buyer the right to purchase a currency or commodity at a fixed price at some specified date in the future.A person buying this contract is therefore betting that the price will go up, meaning that when their contract expires they can buy at below market price and sell immediately for a profit.

The person selling the contract profits if the price goes down, because when the contract expires the other party will have to buy their coins from them at above market price.If you already own Bitcoin this can be a good alternative to ‘hedge your bets’ and profit from a downturn in price, without having to actually sell your coins – because if your coins are bought from you at above market price you can just buy them back on the open market and take the difference as your profit.You can sell futures contracts at OrderBook.net Options are another financial derivative which can be used to profit on both rises and falls in price.You can use options to place a bet that the value of Bitcoin will be higher or lower than a particular value at a certain point in the future (say after 1 day, or 1 week), or that the value will or won’t hit a certain level above or below its current price within a particular time period.You can purchase options contracts or create your own and pay with BTC through services such as BTC Oracle Another options service with 5 different order types and a kind of practice account set-up for learning how to use them is Gryfx Binary options are a simplified type of options contract, usually aimed at day traders.