SEC has some sorts of severe considerations regarding the plan of security industry to create the trade funds closer to cryptocurrency
The Securities and Exchange Commission (SEC) of the US had some sort of the severe considerations regarding the plan of the security industry to create the trade funds closer to the cryptocurrency.In a letter, which is written to the heads who are working in the Securities Market and the financial marketplaces association along with the Investment decision company, the director working in the department of the division of the investment decision management stated that there were quite significant outstanding questions too about how this money which is holding so much of the cryptocurrencies would be able to satisfy the regulatory norms.
The security agency has already raised its concerns about the high-end potential for market manipulation of digital currencies
There were several areas of concerns which were determined in the letter like the valuation of these underlying cryptocurrencies which is being held by either the mutual money or the trade traded cash too. Along with that, there were other concerns just like the actual liquidity from the assets that these funds would actually be holding. It is the collapse of the digital currencies a few days back that underscores the point of the regulator about the volatility of the currency.
These regulators have not at all barred all forms of the exposures to the Bitcoin through the exchange-traded funds
The security agency of the US had already raised its concerns about the high-end potential for the market manipulation of the digital currencies. It has been reported from few of the sources that this hike which is there in the price of the bitcoin from the $ 150 up to $ 1000 late in the year 2013 was being due to the manipulation by few of the major holders of the digital currency. Well, this has not been done for the first time when the security agency had halted its plans for the exchange-traded funds which are based on the cryptocurrencies.
The SEC had already ruled out all kinds of the exchange-traded funds which are holding the cryptocurrencies
Earlier in March last year too, the regulatory commission had blocked the application which is being put forward by Winklevoss twins as per the reports generated by the Wall Street Journal. During that time, the security commission had stated that this bitcoin is not being regulated in a tight manner. Apart from that, there was not any form of the proper clarity in the operations of the various types of exchanges which the bitcoin traded for granting the approval. The SEC had already ruled out all kinds of the exchange-traded funds which are holding the cryptocurrencies.But the thing is that these regulators have not at all barred all forms of the exposures to the Bitcoin through these exchange-traded funds. There are two of the funds which are just launched. These have been pitching the investments in the firms which are having the exposure to the cryptocurrencies.