In a news report, according to US Securities and Exchange Commission chairman Jay Clayton, another preview of fund application is looming this fall. Meanwhile, the US Securities and Exchange Commission remains uncertain.
Moreover, the formation of a Bitcoin (BTC) exchange-traded fund is still ongoing.
The proposed exchange-traded fund is through its preliminary efforts, and there is “work left to be done,” he stated.
Clayton indicated in a news report that the progress has been made, but there are also fears remaining.
The chief difficulty is the disreputable volatility of BTC trading. In addition, it has the potential for price manipulation.
In the past year, BTC has gained rapidly. It is often adding thousands within a day, or declining just as fast, suggesting collaborative efforts to move the price.
Clayton questioned, “An even harder question given that they trade on largely unregulated exchanges is how can we be sure that those prices aren’t subject to significant manipulation?”
He also added, “People needed to answer these hard questions for us to be comfortable that this was the appropriate kind of product.”
The statement came up, days after the Van Eck fund introduced a limited investment vehicle. This is for large-scale clients, though it is not entirely an ETF.
Disregarding on The Prospects of an ETF
The US SEC has been usually skeptical of ETF based on hot current trends. It has also actively banned terms like “blockchain” and “5G” from the names of funds.
Meanwhile, an ETF can have any size. It can also offer exposure to nearly any asset to the broader public.
On the flip side, it is creating a risk for personal finance based on hype.
The BTC markets have generally disregarded the prospects of an ETF, as new factors are concerning the price.
However, the mid-October reviews of the Van Eck and Bitwise funds may include transparency to the potential for mainstream acceptance of BTC.
The US SEC has been a substantial force in the formation of the existing crypto-asset market.
The Commission has examined a variety of aspects on the digital coin space. These were essentially ruining the ICO goldmine in the USA.
The examination has also created pressures for US-based digital coin trading.
The constant reevaluation of newly issued tokens and coins has made crypto startups much suspicious.
All of these are for their ability to work as unregistered securities.
The actions of the SEC also triggered US-based exchanges Bittrex and Poloniex to delist multiple assets. Moreover, for most exchanges to restrict the access for US traders.
Meanwhile, the leading exchange, Binance intends to open a US-based fully compliant branch.