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    SEC throws sop to US investors with bitcoin ‘lite’ equity ETFs

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    Two Bitcoin “Light” equity ETFs have begun trading in the United States, and the third has been approved by the Securities and Exchange Commission as regulators have thrown sops at investors seeking real Bitcoin ETFs.

    The SEC has so far refused to approve exchange-traded funds that invest in the cryptocurrency itself, but many asset managers have applied for approval, and similar measures are available in Sweden, Switzerland, Jersey, Germany and Canada. It’s already up and running.

    There is growing speculation that it will approve one or more of the following Bitcoin futures ETFs: Encouragement Comments from SEC Chair Gary Gensler. However, this is not considered imminent and regulators have postponed the deadline for the futures ETF quartet decision proposed by Global X, Valkyrie, WisdomTree and Kryptoin to 45 days. November 21st.

    The Grayscale Bitcoin Trust, a private trust, has grown to $ 35 billion since its launch in 2013, demonstrating its willingness to cryptocurrencies in the United States.

    According to data provider EPFR, net inflows into dedicated crypto funds reached a four-year high of over $ 2.5 billion overall last week.

    Invesco is an Invesco Allerian Galaxy Crypto Economy ETF (SATO — in honor of the mysterious computer programmer who created Bitcoin, Satoshi Nakamoto) and an Invesco Allian Galaxy Blockchain User and Decentralized Commerce ETF (BLKC). And tried to partially fill the blanks in the ETF. We started trading this week.

    The fund invests at least 80% of its assets in companies that are “substantially” engaged in activities such as cryptocurrency mining, trading and infrastructure, and crypto-linked commercial private mutual funds. .. BLKC also has companies involved in the development of blockchain.

    By far the largest holding of both is the PowerShares Cayman Fund, followed by Bigg Digital Assets, which develops software to track, track and monitor cryptocurrency transactions.

    This week, the SEC has given a green light to its third cryptocurrency ETF, the Volt Crypto Industry Revolution and Tech ETF (BTCR). It “holds most of your net worth in Bitcoin or invests in an entity that draws most of your earnings from Bitcoin mining, lending, or trading.”

    The fund is VanEck Digital Transformation ETF (DAPP) And bitwise crypto industry innovators (BITQ), Digital asset-related stocks such as software company MicroStrategy, which says it holds $ 5 billion in Bitcoin on its balance sheet, and Coinbase, a cryptocurrency exchange platform, and Amplify Transformational Data Sharing ETF (block), Holds a portfolio of companies involved in the development and use of blockchain technology.

    Todd Rosen Bruce, Head of ETFs and Mutual Fund Research at CFRA Research, believes that some of the new vehicles will benefit.

    “In the long run, there is an ecosystem of companies that can profit from cryptocurrencies as they become more widely used,” he said.

    “It’s still a very early stage for both Bitcoin and blockchain technology. These companies have potential, but since this is still an early stage investment, who will be the winner or loser? It’s not clear, so diversified ETFs are a great way to get in touch with trends, not individual stocks. ”

    The latest approvals are made despite considerable concerns within the SEC regarding the infrastructure that underpins the crypto market.

    On Tuesday, Gensler described crypto finance as “the old world of Wild West or’buyers are wary’” that existed before the securities law was enacted.

    “This asset class is full of fraud, fraud and abuse in certain applications. We can do better,” he told the House Financial Services Commission.

    Comments reflect the broader SEC backlash against higher-risk ETFs, Gensler warning At the beginning of the week, leveraged funds pose a risk to financial market stability. He demanded stricter rules that apply to these complex vehicles.

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    SEC throws sop to US investors with bitcoin ‘lite’ equity ETFs Source link SEC throws sop to US investors with bitcoin ‘lite’ equity ETFs

    The post SEC throws sop to US investors with bitcoin ‘lite’ equity ETFs appeared first on California News Times.

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