Bitcoin and other cryptocurrencies have been in the spotlight for a while, but they aren’t the only digital currencies out there. The world of ICOs has brought many new opportunities to invest in cryptocurrency without needing to purchase Bitcoin or any other well-known coin. However, due to their unregulated status right now, these funds are largely considered too risky for mainstream investment portfolios. ETFs allow institutional investors with significant capital at hand access into this market. Depending on how US regulators react, it could be another step towards widespread adoption from traditional financial institutions that might not otherwise have been interested in investing in cryptos until recently
Cryptocurrency ETFs are awaiting approval from the US Securities and Exchange Commission. There are more than 40 digital currency ETFs that await approval from the SEC. Read more in detail here: is cryptocurrency legal.
As prominent cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) wobble at record price levels, fund managers seem to be hurrying to meet investor demand. Over 40 bitcoin exchange-traded funds, or ETFs, are now awaiting listing in the United States, according to a Bloomberg Terminal snapshot captured by Bloomberg Intelligence analyst James Seyffart.
According to the source, the Securities Exchange Commission has already authorized four, the most prominent of which is the Ark 21Shares Bitcoin ETF, which was formed in collaboration with 21 Shares and ARK Invest.
AXS Investments submitted the most recent fund proposals on October 27. The AXS Bitcoin Strategy ETF and the AXS Short Bitcoin Strategy ETF are the two options. The great majority of funds vying for a spot on the exchange want to buy Bitcoin directly, or via futures and swaps. A few funds use a hybrid approach, investing a part of their assets in BTC and the balance in equities or blockchain firms headquartered in the United States. Three funds, on the other hand, are dedicated to mirroring the performance of ETH. The VanEck Ethereum Trust, Wisdomtree Ethereum Trust, and Kryptcoin Ethereum Trust are the three. All three applications were submitted early this year and are awaiting clearance.
The Securities and Exchange Commission required eight years to approve such financial instruments in the United States, and they have already garnered great appeal among investors. The Proshares Bitcoin Strategy ETF became the first crypto ETF to debut in the nation earlier this month. The fund’s total assets under management had topped $2 billion at the time of publishing.
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