After the SEC was closed in 2017, the SEC has formally launched a formal investigation into the possible authorization of Bitcoin Exchange Traded Funds (ETFs) to amend one or more of its rules. Institutional Investors Arrive Formal proceedings regarding the listing of the first exchange-traded Bitcoin funds (ETFs) in the United States are set to commence, according to an official announcement by the Securities and Exchange Commission (SEC). Bitcoin ETFs would effectively deliver significantly
End Excerpt ->
After the idea was closed in 201
Institutional Investors Incoming
Official Securities and Exchange Commission (SEC) Formal Procedures Begin to Announce First Bitcoin Exchange Listing (19659010) Bitcoin ETFs would effectively have a significantly higher exposure to bitcoin Provide futures contracts that have been controversial even among proponents of cryptocurrency while offering investors the opportunity to conveniently diversify their portfolios with gold Standard of the Cryptocurrency
The rule that would need to be changed to allow Bitcoin E TFs is Section 19 (b) (2) (B) of the Securities and Exchange Act of 1934. Explains the Agency:
The Commission is initiating proceedings pursuant to Section 19 (b) (2) (B) of the Act to determine whether the proposed rule change should be approved or rejected. The initiation of such a procedure is appropriate given the legal and political issues arising from the proposed rule change. The initiation of the procedure does not indicate that the Commission has made any conclusions as to the issues involved.
Several issuers have already made formal applications for the introduction of Bitcoin ETFs – including ProShares, Direxion, Exchange Listed Funds, VanEck, REX ETF and the Winklevoss twins – but to no avail.
SEC takes formal steps to adjust legislation to list ProShares' BTC ETFs (currently not purely asset-backed)
(This may explain the rise in OTC buying activity in the US last weeks) https://t.co/O7eI2twbty
– Foreground Capital (@ForegroundBlock) April 6, 2018
The legal adoption of a Bitcoin-based ETF would most likely help facilitate the takeover of institutions by those anxiously waiting on the sidelines. In this way, the Bitcoin market would also receive greater liquidity.
"Absolutely Not" All ICOs are Cheats
The SEC's formal investigation into Bitcoin ETFs comes after agency chair Jay Clayton reiterated its stance Supervision is good for the cryptocurrency industry as a whole ,
As noted by Fortune Clayton claimed that "absolutely not" all ICOs are fraudulent in a speech at Princeton University.
At the same time The SEC has taken legal action against the founders of Centra Tech – a scam ICO, supported by celebrities from DJ Khaled and Floyd Mayweather. Clayton:
I think if we do not stop the scammers, there is a serious risk [of a] Regulatory pendulum – the regulatory measures will be so severe that they will limit the capacity of this new security.
Do you think Bitcoin ETFs are unavoidable? Do you think that more regulatory oversight is good for the crypto currency space? Let us know in the comments below!
Images courtesy of Shutterstock, Bitcoinist Archive and Twitter / @ ForegroundBlock.