Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

sec.gov

Post reply on HN
Print view View original

161–170 of 357 posts

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#161

Post by cestith »

Analemma_ wrote: post #129
danielweber wrote: post #124

Earlier quoted context omitted.

Eehhh, I've been skeptical of Bitcoin in the past because of its volatility, but this is very unusual. It's been rather stable on a week-to-week basis for a long time.

The SEC declining to approve some investment vehicle is not unusual at all. Compare that to the USD, where nothing short of global nuclear war is going to cause a 10-minute 25% swing.

On 2001-09-11 gasoline tripled, food doubled, and bottled water as much as quadrupled or quintupled in dollar pricing in parts of the US in less than a day.

Yes, there were in fact $4/gallon, $5/gallon, and even $8/gallon gasoline and diesel prices posted, many by noon. This also increased the price of everything shipped by truck for a while, too.

Prices came off that peak quickly, but took months to years to revert completely.

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#162

Post by st3v3r »

EGreg wrote: post #59
chollida1 wrote: post #18

Bitcoin just went from a high of 1327.1926 to 995.9575 in the blink of an eye. Wow. From the ruling.... > First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated. > Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulat…

I put a 50x leveraged short contract trade 10 mins before that at BitMex, and just before it plummeted, it quickly went up to 1327 and I got wiped out. So I didn't get to make a huge return!

So you spun a roulette wheel and lost?

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#163

Post by eli »

cestith wrote: post #161
Analemma_ wrote: post #129

Earlier quoted context omitted.

The SEC declining to approve some investment vehicle is not unusual at all. Compare that to the USD, where nothing short of global nuclear war is going to cause a 10-minute 25% swing.

On 2001-09-11 gasoline tripled, food doubled, and bottled water as much as quadrupled or quintupled in dollar pricing in parts of the US in less than a day. Yes, there were in fact $4/gallon, $5/gallon, and even $8/gallon gasoline and diesel prices posted, many by noon. This also increased the price of everything shipped by truck for a while, too. Prices came off that peak quickly, but took months to years to revert…

I don't think storing value in diesel fuel is a good idea either.

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#164

Post by choxi »

Could someone explain what a Bitcoin ETF is? My understanding is that ETFs are like index funds, which group other stocks into one basket. There's only one Bitcoin though, so what would a Bitcoin ETF collate? The "Description of the Proposal" didn't really make that clear to me.

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#165

Post by mrb »

Analemma_ wrote: post #100
slg wrote: post #80

Earlier quoted context omitted.

>Bitcoin just went from a high of 1327.1926 to 995.9575 in the blink of an eye. That is a loss of 25% of its value. This announcement does nothing to hurt the utility of Bitcoin or its application as a medium of exchange. That drop certainly seems like a speculative investment bubble popping.

Yup. Any "currency" that can plummet in value by 25% because of a minor SEC ruling is not ready to be a store of value.

You must be unfamiliar with financial markets. Many assets have lost 25% in minutes and still considered perfectly acceptable store of value: stocks, commodities, etc.

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#167

Post by drcross »

sanswork wrote: post #114
Taek wrote: post #103

Earlier quoted context omitted.

Well, it can't compete with the USD. But plenty of nations like Venezuela have citizens that would happily take a >25% haircut to escape their governments capital controls. When Greece went bankrupt, life was much easier for anyone with Bitcoin than for anyone without it. As many issues as Bitcoin has today, it has clear use cases.

>When Greece went bankrupt, life was much easier for anyone with Bitcoin than for anyone without it. How? Bitcoin atms were basically non-existent there and from what I read on /r/bitcoin at the time from Greeks no one there was accepting it in stores.

There were capital controls restricting more than 100 euro worth of withdrawals from banks per day. Sure it's not helping you if you are buying a coffee but if it's saving parts of your pension that you worked your whole life to earn then it becomes very important.

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#168

Post by dnautics »

Analemma_ wrote: post #98
EGreg wrote: post #59

Earlier quoted context omitted.

I put a 50x leveraged short contract trade 10 mins before that at BitMex, and just before it plummeted, it quickly went up to 1327 and I got wiped out. So I didn't get to make a huge return!

Consider that your expensive lesson about the dangers of short-selling even when you're absolutely sure the price will go down.

well you don't know how much he lost. It could have been say $1000. Evidentally, the contract was designed to trigger a closure of the position when it dropped out. At a 50x short, an "investment" of $1000 would have yielded $10k on today's turn of events.

Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

#170

Post by dnautics »

st3v3r wrote: post #162
EGreg wrote: post #59

Earlier quoted context omitted.

I put a 50x leveraged short contract trade 10 mins before that at BitMex, and just before it plummeted, it quickly went up to 1327 and I got wiped out. So I didn't get to make a huge return!

So you spun a roulette wheel and lost?

he lost even though it landed on the correct color.
Post reply on HN