Interesting article in today's WSJ on the many "pump-and-dump" manipulations in various alt-coins on the exchange Binance Cryptocurrency Schemes Generate Big Coin
Dozens of trading groups are manipulating the price of cryptocurrencies on some of the largest online exchanges, generating at least $825 million in trading activity over the past six months—and hundreds of millions in losses for those caught on the wrong side, according to a Wall Street Journal analysis.
In a review of trading data and online communications among traders between January and the end of July, the Journal identified 175 “pump and dump” schemes involving 121 different digital coins, which show a sudden rise in price and an equally sudden fall minutes later
The article doesn't mention Bitcoin, but the problem is a general one for all crypto. Manipulation is the main reason why the SEC is hesitant to approve a bitcoin ETF, for example. Namely, regardless of how diligent a regulated US exchange may be, price formation may take place in wildly unregulated overseas venues.
My guess is that a coveted bitcoin ETF will be approved, simply throwing 'manipulation' into the 15 pages of risk factors. After all, we already have bitcoin futures at the CBOE and spot trading at various US exchanges.
Another argument for approval is -- are things really any better in, for example, the metals markets, currency pairs, various other commodities, emerging market equity, etc, etc -- all of which currently trade in ETF form?
Personally, I would welcome an ETF, as I enjoy the entertainment factor!