The U.S. securities and exchange Commission plans to relax the rules for Exchange-Traded Funds (ETF). The proposal goes through, it could allow the Bitcoin ETFs and thus a substantial Opening for Mainstream investors mean.
Many institutional investors and private individuals are still cautious when it comes to investing in Bitcoin. The reasons for this are the high volatility and especially regulatory issues. In addition, potential investors are discouraged by the seemingly complicated process of acquiring Bitcoins. Bitcoin ETF could give important signals. A new application of the American stock exchange Supervisory authority in the SEC suggests that it comes here soon to Change.
The operation of the SEC
It is said in the press release from the SEC:
“The Securities and Exchange Commission voted today on a new rule and Changes to introduce in order to modernise the regulatory framework for Exchange Traded Funds (ETFs). So a clear and consistent framework for the existing ETFs. ETFs that meet certain conditions, would make it possible to work within the Investment Company act of 1940, and to come out on the market, without the need for individual exceptions to meet. The proposal would promote greater competition and innovation in the ETF market and the choice for investors.“
This loosening of the rules may pave the way for Bitcoin ETFs. Just the mention of that after the planned Modifications are not “individual exceptions” meets would have to be the “choice for investors,” would be expanded, here is hope. Further evidence of the SEC’s Chairman, Jay Clayton delivers:
“Many Main Street investors use ETFs-Investments in order to achieve your financial goals. This proposal is a further step in order to set a crucial part of the 3.4 trillion-US-Dollar-ETF-market in a regulated framework that continues to provide the Overview and the protection that investors expect. The development of ETFs has given investors the opportunity to achieve their goals more effectively. We should support such innovations and to secure, so it allowed our regulatory framework, while we uphold the protection of investors.“
Bitcoin ETF, especially for individuals interesting
Index funds or ETFs are exchange facilities on the development in the value of an exchange-traded underlying asset, such as the DAX or the Dow Jones. ETFs are providers is often available at low cost and enable it to invest in whole markets. Bitcoin ETFs would allow trading in the regulated stock exchange segment. ETFs as an investment option are especially for individuals interesting. To were already at the beginning of the year, the SEC number of requests for the Bitcoin ETFs, which have been drawn back to the concerns of the authority, however, for the most part. Bitcoin ETFs would simplify the investing in Bitcoin for private people is extremely high, and the market thus a high level of capital inflow. Apart from the simplification of the investment that would be an important Signal in the regulation.
The amendment proposal since the publication for 60 days is up for debate.