Additional concerns from the U.S. Securities and Exchange Commission (SEC) might hinder the approval process of listing new exchange-traded funds (ETF) linked to cryptocurrencies.
That is according to a public letter signed by the director at SEC’s Division of Investment Management, Dalia Blass.
“There are significant investor protection issues that need to be examined before sponsors begin offering these funds to retail investors,” states the letter and continues to list five areas of concern for SEC: valuation, liquidity, custody, arbitrage and potential manipulation. The challenge the SEC is facing is evaluating a fair price of a crypto-related ETF considering the lack of cryptocurrencies’ prices stability.Tags: cryptocurrency, EFTs, sec
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