# kaal:claim:3411110-029

**Claim.** The SEC's reasoning against the Bitcoin ETF does not transfer to blockchain based private investment funds such as those built on Melonport, because such funds trade a diverse array of cryptocurrencies and reach a much more limited and accredited audience, which curtails investor risk.

**Type.** mechanism  **Support.** argued

**Holds when.**

- private investment funds limited to accredited investors
- funds trading diversified crypto portfolios rather than Bitcoin alone

**Source quote.**

> Moreover, the audience of a Melonport-type fund is much more limited and curtails the risk to investors.

**From.** Wulf A. Kaal, Samuel Evans, *Blockchain-Based Securities Offerings* (2019), V.1 SEC, page 23

**Cite as.** Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

**Verify.** sha256 of source PDF `c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Evans%20-%202019%20-%20Blockchain-Based%20Securities%20Offerings.pdf

**Topics.** systemic-risk, smart-contracts

**Keywords.** melonport, private-investment-funds, accredited-investors, diversification, smart-contracts

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