Last month the Ontario Securities Commission refused to approve a prospectus for a fund that proposed to invest in bitcoin. The investment did not have enough liquidity, i.e. investors could not be certain enough that they could sell their investment when they wanted to. A summary is here.
The OSC also had concerns about the valuation of bitcoin (surprise!) and its safekeeping. Given the number of thefts of cryptocurrency in recent years, and the Quadriga mess, the latter concern may be justified as well.
What do you think? Is the OSC just doing its job, or is it not sufficiently open to the potential of new technologies and new forms of value, like cryptocurrencies?
Or will the proponent of the fund be able to come up with satisfactory answers to the OSC’s objections (satisfactory to you, or satisfactory to the OSC)?