Gabor Gurbacs, a director and digital asset strategist at VanEck, isn’t happy with last week’s decision by the United States Securities and Exchange Commission (SEC) to extend the review period for the VanEck/SolidX Bitcoin ETF to February 27.
Making matters even more frustrating for Gurbacs, San Francisco-based cryptocurrency exchange Coinbase has announced the listing of four small-cap ERC-20 tokens — Civic (CVC), district0x (DNT), Loom Network (LOOM) and Decentraland (MANA) — on its Pro trading platform.
In response, Gurbacs took to Twitter to call out the apparent double standard that the SEC uses when assessing risk between retail and institutional investors.
Coinbase shitcoins OK for millions of retail investors. Bitcoin ETF for institutional investors too crazy. What f*ing parallel universe is this? 🤦♂️🤯
— Gabor Gurbacs (@gaborgurbacs) December 7, 2018
Gurbacs’ tweet centers around the SEC’s current justification for delaying the acceptance of the Bitcoin ETF, which largely centers around underlying price manipulation.
“What investors expect is that the trading in that commodity that’s underlying the ETF is trading that makes sense, is free from the risk or significant risk of manipulation. […] Those kinds of safeguards don’t exist in many of the markets where digital currencies trade,” the SEC’s Chairman Jay Clayton previously stated.
This same concern seemingly is not applied to average retail investors who are becoming increasingly more exposed to small-cap altcoins. For instance, of all four altcoins recently added to Coinbase, none have a market cap over $60 million.
Coinbase competitor, Gemini, the crypto exchange founded by the Winklevoss twins, also recently announced support for Bitcoin Cash (BCH) trading and custody. Despite BCH suffering from one of the worst drops of any altcoin in recent months, which was fueled by a highly questionable hard fork, Gemini received listing approval from the New York State Department of Financial Services (NYSDFS).
While Gurbac uses overly-harsh language to describe the altcoins chosen by Coinbase, the call for consistency in treatment for both retail and institutional investors is one that will likely resonate.
More: Garbor Gurbacs’ Tweet
Photo: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.