SEC cools traders’ hot plans for cryptocurrency-based exchange traded funds

SEC cools traders’ hot plans for cryptocurrency-based exchange traded funds


The U.S. Securities and Exchange Commission has serious concerns about the securities industry’s plans to create exchange traded funds around cryptocurrency.

In a strongly worded letter to the heads of the Securities Industry and Financial Markets Association and the Investment Company Institute, the director of the division of investment management, Dalia Blass said that there were “significant outstanding questions” around how funds that held large amounts of cryptocurrencies (and related products) would satisfy the necessary regulatory requirements.

In the letter Blass identified a number of areas of concern for the regulatory agency including the valuation of underlying cryptocurrency assets held by mutual funds or exchange traded funds; the actual liquidity of the assets…

Read Story

Related Post