Should Bitcoin Bulls Be Cautious Right Now?
On Monday, CNBC has reported that the Securities Exchange Commission’s recently rejected the pure-play bitcoin exchange-traded funds once again. The SEC disapproved VanEck’s filing for a physical bitcoin ETF this past Friday.
They reported it didn’t have the confidence that the crypto was free of fraud and market manipulation. This weighed would heavily on their decision in order to approve the product. In October two bitcoin-ETFs, ProShares Bitcoin Strategy ETF (NYSEARCA: BITO), and Valkyrie Bitcoin Strategy ETF (NYSEARCA: BTF) began trading.
Furthermore, VanEck’s Bitcoin Strategy ETF, the least expensive offering to date, starts trading Tuesday under the ticker symbol XBTF. Invesco withdrew its bitcoin futures ETF application because of the cryptocurrency’s volatile performance. They are now moving towards a pure-play bitcoin product.
Anna Paglia, Head of ETFs and Indexed Strategies, stated, “I wasn’t surprised that the SEC rejected the application last week. Issues like price manipulation and fraud have not been addressed yet. I do think that some more regulation is something that the SEC is expecting before approving the next application, but I’m counting on 2022 as the year for a pure-play ETF.”
Investors are looking to the SEC for clearer regulation for the bitcoin market, though investors could be waiting a while. During this waiting period, investors should tread with caution with the new cryptocurrency futures products.
