The $2 trillion cryptocurrency market still does not have adequate protections against fraud and manipulation, US Securities and Exchange Commission (SEC) Chair, Gary Gensler, told Yahoo Finance in an interview. The SEC Chief emphasized the market still needs more regulatory supervision:
"Without that, I think that it is really, as I have said to others, a bit of the Wild West. These markets, largely around the globe, 24 hours a day, seven days a week, do not have the similar protections against fraud and manipulation and front running and other abuses," Gensler said.
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Gensler's skepticism comes despite the fact the SEC gave the green light to a bitcoin futures exchange traded fund (ETF) of the ProShares Bitcoin Strategy ETF. The company launched trading on Oct. 18 at the New York Stock Exchange with the ticker "BITO." Later, the SEC also approved the the applications filed by VanEck and Valkyrie Investments for bitcoin ETFs. The products are based on futures contracts on the Chicago Mercantile Exchange (CME). VanEck charges a management fee of 0.65%.
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