NY Crypto Exchange Report Bearish for Bitcoin ETF Plans

A new report drafted by the New York attorney general’s office (OAG) alleges that a significant number of cryptocurrency exchanges may be vulnerable to market manipulation, a finding that could prove ominous for hopes among investors that federal regulators will approve a bitcoin ETF or other exchange-traded crypto products in the near-term.

3 CME-Partnered Exchanges Flagged by NY Probe

Bitcoin, according to Securities and Exchange Commission (SEC) Chairman Jay Clayton, is not a security under federal law. However, an exchange-listed fund that provides investors with exposure to bitcoin would be a security, which is why the approval of these products falls under the SEC’s purview.

While several bitcoin ETF applicants have sought to create a fund whose shares would be backed by physical BTC, the sentiment among most analysts is that the first cryptocurrency ETF to receive a green light from the SEC will be one that holds bitcoin futures, which are already regulated by the…