SEC throws US investors the chance

Two Bitcoin-Lite stock ETFs have taken on the trade in the USA, and a third party was approved by the Securities and Exchange Commission, since the regulatory authority is concerned with investors who require a real Bitcoin ETF.

The SEC has so far refused to approve stock market -traded funds that invest in the cryptocurrency itself, although a number of asset managers have applied for this and have already been in operation in Sweden, Switzerland, Jersey, Germany and Canada.

There is more and more speculation that after encouraging comments from Gary Gensler, the chairman of the SEC, it will approved one or more Bitcoin futures ETFs. However, it is unlikely that this is imminent, since the regulatory authority has postponed the deadlines for their decisions about a quartet of Futures ETFs, which was proposed by Global X, Valkyrie, Wisdomtree and Kryptoin, with 45 days, whereby the deadline for the first has now expired 21.11.

The Grayscale Bitcoin Trust, a private trust, has grown to $ 35 billion in 2013, which indicates the appetite for cryptocurrency in the USA.

The net inflows in dedicated cryptocurrency funds, according to EPFR, a data provider, reached a four-year high of more than $ 2.5 billion.

Invalco has tried to partially fill the ETF empty by investing the Investco Alerian Galaxy Crypto Economy ETF (Sato-in honor of Satoshi Nakamoto, the mysterious computer programmer that has developed Bitcoin) and Invalco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC), both of them began this week to act.

The funds invest at least 80 percent of their assets in companies that work “essentially” in activities such as cryptocurrency mining, trade and infrastructure, as well as in out-of-the-counter private investment funds associated with crypto. BlKC also holds companies that are involved in the development of the blockchain.

The greatest participation in both is the Powershares Cayman Fund, followed by Bigg Digital Assets, the software to pursue, follow and monitor cryptocurrency transactions.

The SEC gave the green light this week for a third crypto stock ETF, the Volt Crypto Industry Revolution and the Tech-ETF (BTCR), which will invest in "companies that keep a large part of their net capacity in Bitcoin or achieve a large part of their income". From the Bitcoin mining, lending or transaction “.

The funds enter the footsteps of the Vaneck Digital Transformation ETF (DAPP) and Bitwise Crypto Industry Innovator (Bitq), which invest in shares with regard to digital asset-such as Microstrategy, a software company that claims 5 billion balance sheet and coin base, a crypto exchange platform-and amplify transformation Data Sharing ETF (Blok), which holds a portfolio of companies that are involved in the development and use of blockchain technologies.

Todd Rosenbluth, head of ETF and investment fund research at CFRA Research, considers some of the new vehicles to be sensible.

"In the long term there is an ecosystem of companies that can benefit from it because the cryptocurrency is used wider," he said.

"The Bitcoin and Blockchain technologies are still at the beginning. These companies have a future, but since it is still an investment in the early phase, it is not clear who will be the winners and losers.

The recent permits are carried out despite significant concerns within the SEC regarding the infrastructure that underpins the cryptoma market.

On Tuesday, Gensler described crypto finances as the "wild west or the old world of the 'Buyer'" that existed before the securities laws were issued.

"This asset class is full of fraud, fraud and abuse. We can do it better," he told the Financial Service Committee of the House of Representatives.

The comments reflected a wider resistance of the SEC against risky ETFs. Gensler warned at the beginning of the week that prayed funds are a risk of the stability of the financial markets, and demanded stricter rules for these complex vehicles.