Motives for Hesitancy to List Cryptocurrency ETFs Outlined by the SEC

Cryptocurrency North America United States

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.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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