# kaal:claim:2998033-013

**Claim.** The SEC's reasoning against the Bitcoin exchange traded fund does not transfer to blockchain based private investment funds, because such funds trade a diverse array of cryptocurrencies rather than Bitcoin alone and reach a much narrower investor audience, which curtails investor risk.

**Type.** condition  **Support.** argued

**Holds when.**

- applies to private funds created through Ethereum smart contracting on platforms such as Melonport

**Source quote.**

> Most importantly, private investment funds on Melonport would be actively trading a more diverse array of cryto- currencies, not just Bitcoin. Moreover, the audience of a Melonport-type fund is much more limited and curtails the risk to investors.

**From.** Wulf A. Kaal, *Blockchain Innovation for Private Investment Funds* (2017), II.5. Regulatory Implications, page 16

**Cite as.** Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033

**Verify.** sha256 of source PDF `aafb1be3c25cd33da477d759df9ca2f856f0a8fe133d6396da2e75d0af573dbd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Blockchain%20Innovation%20for%20Private%20Investment%20Funds.pdf

**Topics.** securities-law, private-funds, tokenomics

**Keywords.** sec, private-funds, melonport, investor-protection, bitcoin-etf

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