April 29, 2017
I believe as you rightly have done with these 'cryptocurrency' filings for ETF status and rejected them, that you should reject this one also for the moment.
It is not that cryptocurrencies are a negative thing, it is because they are in their infancy with regards to widespread understanding on even the basic fundamentals of what they actually are, which is a dangerous thing.
For example, with the recent global publicity Bitcoin received with the Winklevoss twins attempt to push the Bitcoin ETF through, all the other 'Altcoins' received publicity. This created an environment where people without full understanding of what they were investing in started pumping money into anything that had 'coin' after it.
A lot of people I personally knew lost their entire savings in places like India and Africa, when they drew their entire mutual funds out and plugged cash into 'Ponzi' schemes such as 'Onecoin'. (https://cointelegraph.com/news/one-coin-much-scam-onecoin-exposed-as-global-mlm-ponzi-scheme)
By giving any cryptocurrency an ETF status this early on without a proper legal and regulatory framework in place, you are in effect giving all the other approximate 750 existing cryptocurrencies legitimacy in the global public eye.
Then there is the issue that Ethereum is considered 'Fuel' rather than a currency- which again shows how naïve investors are when they flocked to invest in it earlier this year. (https://moneymorning.com/2017/04/25/what-is-ethereum/).
Without understanding what it actually is they have pumped the price from $11 to $50 as the 'go to currency' when the Bitcoin ETF was rejected, that too in a very short duration of time. (https://moneymorning.com/2017/03/21/why-is-the-ethereum-price-rising/)
Now as soon as the current Ethereum ETF 'consideration' by the SEC was announced they have pumped it to $72 within the last 48 hrs.
In addition there is talk in the Ethereum community of a potential 'Hardfork', like the one that happened last year, which left two 'chains' and currencies namely Ethereum (ETH) and Ethereum Classic (ETC) competing against each other. This event also saw the price of Ethereum fall drastically. Another Hardfork will have the same effect. (https://qz.com/730004/everything-you-need-to-know-about-the-ethereum-hard-fork/)
This kind of inflationary economics and lack of understanding of even the basics of Cryptocurrencies is very dangerous for investors and I believe the public needs to fully appreciate that your role is to protect investor interests and not to promote investments.
Therefore I humbly request that until a proper legal and regulatory framework is in place, further understanding has been developed by the public and an ETF is not seen to play a part as a legitimatising vehicle for all cryptocurrencies in the eyes of the uninformed public, all such ETF's be put on hold for the foreseeable future.
With Kind Regards,