The US will allow more Americans to buy coins in new funds
The SEC’s decision to deny the Grayscale Exchange Trade Funds: Coincrystals, Cryptocurrencies, and the Bitcoin Market
The SEC denied applications for bitcoin exchange traded funds due to them being too risky for investors. A court ruled in April that the SEC decision to deny the GrayscaleETF was arbitrary and capricious, allowing today’s approval. The existence of a futures exchange of the currency already exists.
Regular investors have become very fond of exchange-traded funds. These funds buy and sell stocks and bonds on exchanges. They’re less expensive than mutual funds because they’re easy to buy. The industry of exchange traded funds has grown by more than 7 percent to a value of $7 billion.
The settlement was announced by the US government, which later pleaded guilty to violating anti-money-laundering laws.
The SEC brought several lawsuits against companies and investors in the year of 2023, and the Department of Justice won it’s case against Sam Bankman-Fried.
But a spokesperson for the SEC said the account had been compromised, and the commissioners hadn’t made a decision. X’s safety team confirmed that the account was hacked just hours later, and didn’t have two-factor authentication enabled.
On Tuesday, a post from the SEC’s official account appeared to indicate that the agency gave the green light to the spot market for bitcoins. Almost immediately, bitcoin’s price spiked by more than $1,000.
The Fed’s latest summary of economic projections showed that policymakers expect to cut interest rates in the year 2024. Investing when interest rates are lower can be riskier than investing when rates are high.
U.S. yes to new bitcoin funds, paving the way for more Americans to buy crypto, via comment on “Bitcoin etf sec-crypto-blackrock-fidelity-ark-investing”
The company has operated a different kind of investment product, called a bitcoin trust, and it had asked the SEC for permission to convert that into an ETF. The judge ruled that the SEC’s rejection of the application was unfair.
SEC Chair Gary Gensler, who famously said crypto is like “the Wild West,” has spent most of his tenure cracking down on it. Most Cryptocurrencies are Securities and therefore fall under the SEC’s purview, due to lack of new, specific from congress.
“There are a number of significant investor protection issues that need to be examined before sponsors begin offering these funds to retail investors,” she wrote.
Henry Hu, professor in the Department of Banking and finance at the University of Texas Law School, said that big investment firms will cause people to think that cryptocurrencies are fake.
“After a long time, the regulators are willing to give clear guidance in terms of what’s legal and what’s not,” says Markovich, who is a professor in the Kellogg School of Management.
The list of approved approved spot bitcoin ETFs includes some lesser-known investment firms, which primarily focus on cryptocurrencies. There are several major money managers in this picture, including Fidelity and Invesco.
ETFs are regulated by the SEC, and that is a big reason why Wednesday’s decision by the agency is so significant. The SEC imprimatur and regulatory clarity are of great importance.
Source: U.S. says yes to new bitcoin funds, paving the way for more Americans to buy crypto
The Valkyrie Bitcoin Fund: Safer Way to Buy and Sell Cryptocurrencies Without Losing Your Private Key, or What Can It Tell Us About Bitcoin?
“There’s no signing up with a crypto exchange, managing a wallet, God forbid losing your private key to whatever bitcoin you own,” he says. “Maybe it will bring more people into the world of digital money.”
Bryan Armour is the director of passive strategies research for North America at Morningstar and he says that the new funds are going to be a safer way to buy and sell cryptocurrencies.
In recent years, sites like Coinbase and Kraken have made it easier for people to buy and sell bitcoin and other cryptocurrencies. There are still lots of obstacles to get to.
“It gives them the opportunity and ability to invest in bitcoin through a regulated, structured security,” he said. His Valkyrie Bitcoin Fund was one of several applications the SEC approved.
The massive run-up has come despite months of negative headlines, the successful prosecution of one of the biggest players in crypto, and after financial regulators and law enforcement targeted a long list of investors and promoters, executives and companies.
