SEC does not disclose the reasons for the listing of cryptocurrencies ETFs

nREVIEWS: A few days ago, the U.S. Securities and Exchange Commission (SEC) published a letter stating why it did not approve the listing of Crypto-Exchange Traded Funds (ETFs) and outlined five concerns about the existence of cryptocurrencies. According to the letter, the agency’s concerns are mainly focused on the following five points: valuation, liquidity, custody, arbitrage and possible market manipulation. As a result, some applications previously filed for ETF applications have been partially withdrawn. Therefore, before the above problems are satisfactorily resolved, the SEC may still not approve the listing application for the Bitcoin ETF.n
nTranslation: Clovern
According to a staff letter from regulators, the Securities and Exchange Commission still has additional concerns about cryptocurrencies, so approval processes for companies seeking to market crypto-linked exchange-traded funds (ETFs) may face Hindern
The SEC responded to two investment associations on January 18, an open letter from Dalia Blass, head of SEC Investment Management. While the department is aware of the increasing interest in holding cryptocurrencies in support of mutual funds and ETF backers, the letter states that “there is a need to double-check the importance of sponsors when they begin to issue these funds to retail investors Investor protection issues. “n
According to Blass, the concerns the agency focuses on are five things: valuation, liquidity, custody, arbitrage and possible market manipulation. As pointed out in the letter, for example, the SEC needs to assess whether the pricing of cryptocurrency-related ETFs is reasonable given the volatility of cryptocurrencies and technical changes such as blockchain bifurcation.n
In addition, liquidity remains another top issue that needs careful scrutiny, and in particular how retail investors cash these innovative products daily.n
The letter states:n
n”Before the above problems are satisfactorily resolved, we do not think it is time for fund sponsors to register for funds that invest heavily in cryptocurrencies and related products, and we have also asked the fund sponsor who submitted the application for registration of such products to withdraw their applications “n
nJust before Blass made the comment, the SEC recently received filing applications for cryptocurrency-related ETFs submitted by several companies. As CoinDesk reported this month, some of those applications have since been withdrawn, and related companies have also raised regulators’ concerns about valuations and liquidity.n
Last year, the SEC also rejected applications for bitcoin-related products submitted by well-known bitcoin investors Cameron and the Tyler Winklevoss brothers.n

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