Professor to SEC: Bitcoin Funds ‘Like a Penny Stock or Ponzi’

Computer science professor Jorge Stolfi has angered bitcoiners with his submission to the SEC regarding a proposed Bitcoin investment fund.

Also read: SolidX Files to Become First Bitcoin ETF on NY Stock Exchange

As part of its approval process to be listed on the Bats BZX Exchange, details of the COIN ETF were published today in the US Federal Register. Any interested parties have 45 days to submit an opinion to the US Securities and Exchange Commission.

To be listed, BZX Rule 14.11(e)(4), which covers commodity-based trust shares, needs to be amended.

Stolfi Warns SEC Against Bitcoin Investment

Bernard MadoffRecommending against any legitimizing of bitcoin as an investment vehicle, Professor Stolfi compared Bitcoin both to a “penny stock,” “shares for a company with no assets, no products and no staff,” and a “pure ponzi scheme like Madoff’s fund.”

The Brazilian academic, who is a full professor at the University of Campinas and a former chairman of its Institute of Computing, is known as a critic of Bitcoin and cryptocurrencies in general.

Unlike stocks and bonds, he wrote, investing in Bitcoin does not pay dividends and is not grounded in any fundamentals.

Investment in bitcoin does not contribute

Read more ... source: TheBitcoinNews