Securities and Exchange Commission for the United States of America stands firmly on the ground where one can not imagine a crypto ETF thriving. The U.S. SEC has struck the ETFs down prior (the Winklevoss ETF) and continues to tread along the same path inhibiting the process of approval for ETFs from GraniteShares, ProShares and Direxion. Meanwhile, the allegations that the commission blames the ETF proposing companies for stay the same.
SEC has kept their regulations intact and bear full intentions on keeping to the rules, the SEC has set for the financial juggernauts. There is no material or abstract hurdle in rendering them ruleless as they keep running the rules over the propositions from crypto companies that the crypto world is ready to witness an ETF coming its way. Though the crypto enthusiasts bear similar hunches, the need of the hour is to grasp the simple fact that the crypto platform has not ripened to maturity as of yet.
Assessing the ETF propositions
Unscrupulously considering, disregarding the user security and asset volatility, the ETFs can turn out the best way to promote the digital financial platform as every single piece of the puzzle would fit right in for the digital currency to become the supplant of the fiat currency. The crypto fantasy world seems like quite a place to do monetary asset dealing but the dreamt world comes with a huge price. As we know it, the ETFs have been known to increase the crypto popularity manifolds.
The fact can be incredibly backed up by taking the fact into account that mere news about the commission assessing the Winklevoss ETF turned in favor of the cryptocurrencies, increasing their monetary worth a great deal. SEC, for a major course, is not in the moods for approving any sort of ETFs or any practical advancements in the world of digital assets. The facts all converge to the point that though we see immense security protocols in the crypto world frameworks, the risks for scammers and frauds still stay at their place. This lay basis to eventually comprising the SEC disapproval which has, in turn, resulted in the cryptocurrencies plummeting down.
How is Bitcoin proportional to ETFs?
We see a number of ETF proposals from several crypto companies including the likes of Winklevoss and VanEck, but all of these have witnessed a similar fate for themselves except from the VanEck and SolidX ones which the commission has put aside for quite some time. We have mentioned prior that the worth of cryptocurrencies is ignited at higher levels as we see a newer technology just around the corner or a highly awaited proposal to be approved by the incumbent authorities.
The fact that latest modifications into the established system allures more investors and users in, is a direct hint to the need of the users to deal under the safest environments possible. Nevertheless, as we delve into constructing feasible and viable options for the users plus more opportunities to invest into, an ETF can surely bring more users to the company of crypto enthusiasts.
Why does the VanEck ETF bear more chance to get approved by the SEC?
Crypto companies have put forth their several variations of a single proposed ETF and we have seen for the likes of the Winklevoss ETF that it has been kicked out from ever being a reality.
The VanEck fund is envisaged by many to be the stepping stone that is set to transfer us towards the crypto era as bitcoin would stand with the fund as it surfaces up. The ETF bears a chance to see the light of another day as it has been designed to be initiated with a lofty minimum share price to keep off the major retail investors. The insurance would pay off quite handsomely as it serves an icing to the top for the VanEck ETF.
What does the commission states the ETFs as (on paper)?
The U.S. SEC has been sharp over how to evaluate the recent round of proposals featuring a crypto ETF. For the ETFs proposed by ProShares, GraniteShares and Direxion, the SEC has acquired a rather strict review, that the ETFs are not yet designed the way that can exterminate the ‘manipulative’ phenomenon that circles the crypto markets.
What’s the take?
The inference out of the hefty discussion focuses solely over the fact the companies are yet to come up with a better-suited proposal for the ETFs, the closest to which comes the VanEck one. The SEC will deny any flaw or a loophole, the commission detects in the ETF framework and will feel no hesitation in getting the proposals thrown into the dumpster.