Subject: SR-CboeBZX-2018-001
From: Shravan Kumar

April 11, 2018

I have read with interest some of the other responses and would like to give my thoughts on the matter of Bitcoin ETF’s.
I firmly believe that in an unregulated and manipulated market (common knowledge) an ETF has no real place.
Ponzi and MLM schemes such as the recently shut down BitConnect who promised returns of up to 120% returns per year (risk-free!) are all too common (
With individuals who have ‘Low Protected Values’ operating with impunity in such an environment, it is important not to send the wrong signal to this community by supporting an ETF without the proper Legal and Regulatory Framework in place to protect the broader public from such predators.
One of the respondents has mentioned ‘price discovery’, and this is an important point. Firstly in something that cannot be valued (at the moment anyway) how does an individual understand what fair value for Bitcoin is?  Also with the use of Cryptocurrency trading Automated ‘Bots.’ and the speed at which news both fake, genuine and sponsored travels in this fledgeling marketplace I do not think without establishing a Legal and Regulatory framework first, Genuine ‘Price Discovery’ will even be possible at all.
Finally what is worrying is the level of understanding of Financial Investment for those ‘on the ground’ who participate in investing in Cryptocurrencies is. An example is the majority of the people who I have spoken to in my professional and personal life who invest in Cryptocurrencies (and is their first investment area), and I have asked their understanding of what a diversified portfolio is- the usual answer is ‘Buying different cryptocurrencies’. This is a product of how Portfolio Diversification is described in most online Cryptocurrency magazines. There is no understanding or appreciation of different asset classes or the need for a Portfolio.
It is not the time to encourage further mass speculation just when reason is returning, and only after people have incurred massive losses in this universe.
Many Thanks,
Shravan Kumar