Sygnia's Bitcoin ETF listing refused by JSE

Hanno Labuschagne

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Sygnia's Bitcoin ETF listing refused by JSE

The Johannesburg Stock Exchange (JSE) refused Sygnia’s request to list a new Bitcoin exchange-traded fund (ETF) in South Africa, citing a lack of a regulatory framework.

A Bitcoin ETF tracks the cryptocurrency price and allows investors to buy into the digital currency through the JSE, removing the need to trade Bitcoin itself.

It also removes the complexities related to storing Bitcoin and moving money into, and out of, cryptocurrency exchanges.
 

hj007

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seriously why would anyone buy a bitcoin ETF?
I guess because you can use existing funds in a brokerage account to buy/trade, deal with taxes etc, rather than set up another account at Luno/VALR? But it does seem like an additional layer that isn't needed, versus ETFs for things like gold, share portfolios etc.
 

Fulcrum29

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She should have asked Musk to Tweet about it, hashtagging the JSE. Oh wait, Magda is not chairing Sygnia any more.
 

NarrowBandFtw

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seriously why would anyone buy a bitcoin ETF?
institutions would, they are already set up to trade ETFs and move capital between stocks and different ETFs

a crypto ETF would give them access to crypto via their existing brokers and integrations without needing to change a single line of code

same reason the Grayscale Bitcoin Trust is successful in the states: buy shares in the trust and you effectively buy direct crypto exposure without needing to know anything about the underlying custody / trading / etc
 

Natas

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My guess is that they want to list their own BTC ETF and they find it irritating that someone else has beat them to it. Either that, or they (through their subsidiary STRATE) are scared of what blockchain represents and don't want to legitimatize cryptos. Blockchain could do away with Central Securities Depositories, such as STRATE. STRATE would undoubtedly want to safeguard their monopoly and their little fiefdom. They (JSE and STRATE) care only for their own interests and bottom line
 

Praemon

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institutions would, they are already set up to trade ETFs and move capital between stocks and different ETFs

a crypto ETF would give them access to crypto via their existing brokers and integrations without needing to change a single line of code

same reason the Grayscale Bitcoin Trust is successful in the states: buy shares in the trust and you effectively buy direct crypto exposure without needing to know anything about the underlying custody / trading / etc

Exactly. It also overcomes regulatory issues and possible grey-areas for those buying the ETFs like exchange control (ie. like buying USD-linked shares in Rands), as well as the general grey-area of crypto-currencies. So you get the wild ride of cryptos without the wild ride of regulatory confusion :p
 
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