Lex letter from New York: a bitcoin ETF is a terrible idea

Meanwhile, my 13-year-old stock-trading nephew has been bombarding me with messages about dogecoin, the crypto token that was created as a joke but which now boasts a $35bn overall market value.

This means that for all its volatility and lack of fundamental underpinnings, cryptocurrencies have become a sizeable industry that is too big to ignore.

But a growing number of companies think the times have changed.

ETFs are liquid only because market makers trade to ensure there is no gap between the market price and the underlying price of the assets in the index they track.

Some think Gary Gensler, the SEC’s new chair, will be more open to the idea of a bitcoin ETF because he has taught crypto and blockchain courses at the Massachusetts Institute of Technology.

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