Bitcoin ETFs May Not Be The Best Investment Vehicles
These tax-efficient investment vehicles are an efficient way to make investors feel “smart”. To be more precise, these investment vehicles often cut out the middle man, or in this case, the financial professional. Over the past year or so, there has been an increased focus on Bitcoin ETFs. The primary purpose of these trading instruments is to make cryptocurrency more accessible for traders. So far, these offerings have seen some moderate success. But are ETFs the next wave of disruption to hit financial markets around the globe? To put things into perspective, the traditional ETF market....
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Apart from Spot Bitcoin ETFs, Ethereum Futures ETFs have been the talk of the crypto industry for months as investors look toward a catalyst for the next bull run. However, data has shown the highly anticipated ETFs have had underwhelming results in trading volume. Although the crypto market has witnessed some gains in the past few days, this hasn’t flowed into Ethereum Futures ETFs as investors seem hesitant to adopt these new Ethereum investment vehicles. How Have Ethereum Futures ETFs Fared So Far? Ethereum futures ETFs provide indirect exposure to the price of ETH through....
“Once crypto exchanges are compliant, the SEC's primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” said the analysts. Eric Balchunas and James Seyffart, exchange-traded fund analysts for Bloomberg, said that a proposed rule change with the United States Securities and Exchange Commission could be the catalyst for the regulatory body approving a spot Bitcoin ETF in mid-2023.In a Thursday tweet, Balchunas said crypto platforms could fall under the SEC’s regulatory framework if the commission were to approve an amendment to change the....
Crypto financial services platform Matrixport has predicted that an approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) could push the price of Bitcoin between $42,000 and $56,000 per unit. BTC, the world’s largest cryptocurrency, has experienced notable increases in value throughout the current week, with the aim of surpassing the significant threshold of $30,000. The cryptocurrency has been influenced by the operations of a spot Bitcoin Exchange Traded Fund (ETF) as investors continue to await approval to onboard institutional and mainstream exposure....
SEC chair Gary Gensler recently hinted he would be more open to accepting ETFs based on crypto futures rather than through direct exposure. Asset manager VanEck is filing for a Bitcoin Strategy exchange-traded fund after it unsuccessfully attempted to launch a similar fund four years ago. According to U.S. Securities and Exchange Commission, or SEC records, VanEck filed a prospectus for a Bitcoin Strategy exchange-traded fund, or ETF, on Aug. 9. Unlike its Bitcoin (BTC) or Ether (ETH) ETFs currently under review by the federal agency, the proposed fund would not invest in BTC directly, but....
A study has been conducted regarding the role of market makers in operating and trading ETFs over the past few years, as well as investors’ understanding of these vehicles. The SEC is taking a very close look at all exchange-traded funds, and they might impose “enhanced attention” rules. Tightened regulation of funds could be on the horizon, which, if this proposal is approved, could end up affecting all Bitcoin ETFs on the market today. SEC Chairwoman Focuses on ETFs. According to SEC Chairwoman Mary Jo White, “recent events” are forcing the hand of the institution to potentially impose....