Commission United States securities and exchange Commission (SEC) this week approved the plans for open public discussions, which would facilitate investment companies launching new exchange-traded funds (ETFs). Does this innovation create more ETF industry in the blockchain?
The proposed changes would allow the ETF to avoid the necessity of obtaining special permission from the SEC, and would help create a «model» ETF. The SEC commissioners unanimously adopted this proposal.
New rule – for most ETFs
The Chairman of the SEC, Jay Clayton (Jay Clayton) noted that the new rule will help to «level the playing field» and that «it will cover most of the ETF is working today, and all such ETF that will be launched in the future.»
Clayton made his statement, explaining that the new rule does not apply to all products, and some of them require more careful study. For example, complex products with leverage, sometimes called «exotic» ETFs will not be able to be created within the new process.
Theoretically, this change could open the market for investment companies that offer ETFs blockchain. ETFs, which instead of investing in cryptocurrency, investing in companies that develop or based on the technology of the blockchain. ETF blockchain can be viewed by traditional investors as the least risky way to benefit from the new economy of the block chain.
Practice has not been clarification on whether the ETF blockchain fall under the «more control». It is possible that they will not be the subject of scrutiny, if you fall within the definition of «model» ETF based on, for example, share options or bonds with no «exotic» features.
Influence on the bitcoin ETF
Despite the fact that while the SEC did not mention the impact of the new rules on ETF blockchain or bitcoin likely bitcoin ETF, investing in the cryptocurrency directly, are unlikely to take advantage of the new process.
The SEC is currently considering applications for several bitcoin ETF and not yet approved any of them because of unanswered questions regarding the cryptocurrency markets and the method of assessment and management of coins. The SEC has already rejected more than a dozen requests, and at the beginning of this year, the Commission was forced
three companies to withdraw the application for a Bitcoin ETF.
Head of investment management SEC Blass, Dalia (Dalia Blass), wrote a letter in March 2018, which sets out the concerns of the SEC regarding bitcoin ETF. The adoption of bitcoin ETF would be a significant event, and some experts have suggested that this may occur sooner rather than later.
If they implemented the new rules proposed by SEC, it will quickly become clear whether the estimated ETF of the blockchain as well as ETFs that invest in more traditional companies and technology. If the SEC is actually trying to make life easier for typical ETFs, the probability of such developments is very high.
However, the SEC also may decide in favor of that ETF blockchain require «more thorough examination».
But easing the regulatory pressure on the ETF market, the amount of which is $3.6 trillion still marks the progress that ultimately can lead to the fact that the ETF of the blockchain and bitcoin will become commonplace for institutional markets.
In 2018, the SEC approved seven ETF blockchain is the first of them were the products launched
18 Jan companies Reality Shares Advisors and Amplify Trust on the Nasdaq and new York stock exchange (NYSE). The regulator of Canada, in turn, endorsed
the launch of the first ETF blockchain in February of this year. In addition, in June Reality Shares launched
the first ETF blockchain in China.