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Litecoin loses ground, CBOE mulls over Bitcoin ETPs

Summary:

  • Litecoin loses ground as the payments processor LitePay ceases operations
  • Chicago Board Options Exchange (CBOE) resumes talks about a possible launch of Bitcoin ETPs
  • Israeli regulator classifies Bitcoin as not a security

Litecoin was among the most hit cryptocurrencies on Monday which could be ascribed directly to the newest revelations coming from the company. Namely, the payments processor LitePay ceased operations prompting some concerns that the coin’s founder is setting the stage for selling the company. The communique is official as it came from the Litecoin Foundation saying that LitePay CEO Kenneth Asare informed the organization a "couple days ago" that "he has ceased all operations and is preparing to sell the company". Litecoin creator Charlie Lee said in a tweet that "Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs". Let us remind that Litecoin witnessed a massive increase in mid-February one the back of the LitePay’s announcement that its merchant payment processing system for the cryptocurrency would go live on 26 February. Nonetheless LitePay released a note on 5 March that is still checking all perspective merchants and therefore is holding off on card registrations due to "the negative perception and drastic actions card issuers have towards cryptocurrency companies".

link do file download linkLitecoin slid to its support placed at $136 following the LitePay-related story, however, buyers do not look as if they would concede defeat therefore one may expect that they could strike back again. If so an upward move could lift the price toward $156 and a short-term descending trend line. Source: xStation5

Will CBOE launch Bitcoin exchange-traded products (ETPs)?

Just several months ago CBOE together with CME launched Bitcoin (and other cryptocurrencies alike) futures. Since then trading volumes on both exchanges have not been impressive and there are assumptions that it could be insufficient to support ETPs seeking 100% long or shore exposure to Bitcoin. Having said that, a senior executive for CBOE Global Markets still believes that the market could support the launch of a bitcoin exchange-traded product (ETP). Furthermore, Chris Concannon, the company’s president, said in a statement that "CBOE expects trading volumes to continue to grow and in the near future reach levels comparable to those of other commodity futures products at the time that they were included in ETPs". Let us recall that back in January the US Security Exchange Commission (SEC) sketched out its concerns over approving an ETF pointing to market fragmentation and noticeable investor protection shortfalls.

link do file download linkEthereum broke its significant demand zone and therefore falls toward $400 seem to be reasonable in the nearest future. The cryptocurrency is almost the lowest point since mid-December last year. Source: xStation5

Israeli regulator officially declares Bitcoin is not a security

Israel Securities Authority (ISA) said that "cryptocurrencies that are designed to be used exclusively as a medium of payment, clearing, or exchange and are not limited to a specific venture; that do not confer additional rights; and are not controlled by a central entity — will not be deemed securities". While Israel has tightened its grip on cryptocurrencies of late there is no doubt that it’s seeking a delicate balance between promoting innovation and protecting investors, according the the ISA release.

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