{"id":68,"date":"2018-01-01T08:54:29","date_gmt":"2018-01-01T08:54:29","guid":{"rendered":"https:\/\/cryptorepublic.app\/?p=68"},"modified":"2018-01-01T08:54:29","modified_gmt":"2018-01-01T08:54:29","slug":"sec-stymies-plans-to-offer-bitcoin-funds-anytime-soon","status":"publish","type":"post","link":"https:\/\/cryptorepublic.app\/?p=68","title":{"rendered":"SEC Stymies Plans to Offer Bitcoin Funds Anytime"},"content":{"rendered":"

[vc_row][vc_column][tm_heading tag=\u00bbh5″ custom_google_font=\u00bb\u00bb font_weight=\u00bb600″ text=\u00bbThe Securities and Exchange Commission (SEC) yesterday put the kibosh on plans to offer exchange-traded funds (ETFs) or other products based on bitcoin or cryptocurrencies to retail investors anytime soon.\u00bb line_height=\u00bb1.4″][tm_spacer size=\u00bblg:25″][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbn a Staff Letter: Engaging on Fund Innovation and Cryptocurrency-related Holdings, Dalia Blass, the SEC \u2019s Director of the Division of Investment Management, posed 31 detailed questions over how funds would value, store, and safeguard fund holdings, as well as concerns over whether investors understood the risk of these investments, and the potential for market manipulation.\u00bb][tm_spacer size=\u00bblg:63″][vc_row_inner][vc_column_inner width=\u00bb3\/12″][tm_image image=\u00bb875″][tm_spacer size=\u00bbsm:30″][\/vc_column_inner][vc_column_inner width=\u00bb9\/12″][tm_heading tag=\u00bbh5″ custom_google_font=\u00bb\u00bb font_weight=\u00bb600″ text=\u00bbUse psychological pricing methods.\u00bb line_height=\u00bb1.4″][tm_spacer size=\u00bblg:23″][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbThe SEC has been skeptical over pressure to launch bitcoin funds to appeal to retail investors, as well as expressed concerns over initial coin offerings, determining that the latter should be treated as securities sales and thus conform with existing investor protection rules, according to the WSJ.\u00bb][tm_spacer size=\u00bbxs:30;lg:35″][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbLast year, the SEC rejected two proposed ETFs that would directly own bitcoin, including one from Cameron and Tyler Winklevoss, arguing that the global market for the digital currency wasn\u2019t transparent enough to support sufficient oversight.\u00bb][\/vc_column_inner][\/vc_row_inner][tm_spacer size=\u00bbxs:30;lg:52″][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbSome fund companies hoped that the SEC might relent after two Chicago exchanges late last year launched futures contracts on bitcoin. Those contracts are regulated by the Commodity Futures Trading Commission, a smaller federal agency whose rules allow Wall Street to more easily market new products\u00bb][tm_spacer size=\u00bbxs:30;lg:68″][vc_row_inner][vc_column_inner offset=\u00bbvc_col-md-6″][tm_heading tag=\u00bbh5″ custom_google_font=\u00bb\u00bb font_weight=\u00bb600″ text=\u00bbDemonstrate the differences\u00bb line_height=\u00bb1.4″][tm_spacer size=\u00bblg:23″][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbMutual funds and ETFs must value their assets at the close of each business day to calculate a new asset value (NAV). The staff note that appropriate valuation is important, as it determines fund performance, what investors pay for mutual funds, what authorized participants pay for ETFs, and what they receive when they exit, among other issues.\u00bb][tm_spacer size=\u00bbsm:30;lg:68″][tm_heading tag=\u00bbh5″ custom_google_font=\u00bb\u00bb font_weight=\u00bb600″ text=\u00bbOffer a money-back guarantee\u00bb line_height=\u00bb1.4″][tm_spacer size=\u00bblg:23″][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbThe thrust of the CNBC report is that the SEC\u2019s concern is fixated on structure, rather than arises from a more bedrock concern about whether the agency wishes to make it easier for retail investors to enter a market that\u2019s vulnerable to the fraud and manipulation Clayton has outlined.\u00bb][tm_spacer size=\u00bbsm:30;lg:68″][tm_heading tag=\u00bbh5″ custom_google_font=\u00bb\u00bb font_weight=\u00bb600″ text=\u00bbTest your offer and price, and be creative.\u00bb line_height=\u00bb1.4″][tm_spacer size=\u00bblg:23″][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbJust last week, the SEC confounded these expectations, by asking sponsors to withdraw proposals to offer ETFs based on bitcoin futures.\u00bb][\/vc_column_inner][vc_column_inner offset=\u00bbvc_col-md-6″][tm_spacer size=\u00bbsm:40″][tm_image full_wide=\u00bb1″ image=\u00bb876″][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Just last week, the SEC confounded these expectations, by asking sponsors to withdraw proposals to offer ETFs based on bitcoin futures.<\/p>\n","protected":false},"author":1,"featured_media":39,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26,28],"class_list":["post-68","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-competitive-research","tag-classic","tag-industry"],"views":666,"_links":{"self":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts\/68","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68"}],"version-history":[{"count":0,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts\/68\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/media\/39"}],"wp:attachment":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}