U.S. SEC questions prospects of bitcoin ETFs
Jan 18 (Reuters) - The U.S. Securities and Exchange
Commission (SEC) has questioned the prospects of bitcoin
exchange-traded funds saying there are a significant number of
investor protection issues about cryptocurrencies and related
products that need to be examined.
The issues need to be addressed before sponsors begin
offering these funds to retail investors, the SEC said in a
letter on Thursday to two trade groups.
"We have asked sponsors that have registration statements
filed for such products to withdraw them," the SEC said.
The SEC said it has questions concerning how funds holding
substantial amounts of cryptocurrencies and related products
would satisfy the requirements of the 1940 Act and its rules.
Acknowledging criticism on transparency, valuation and
underlying assets, the SEC questioned the ability of
cryptocurrency funds to comply with federal regulations for
product offerings issued by investment companies in the public
The SEC raised doubts about the capacity of funds to arrive
at a "fair value" for cryptocurrency-related products and
questioned about steps required to be taken to assure
sufficiently liquid assets to meet redemptions daily.
(Reporting by Kanishka Singh; Editing by Gopakumar Warrier)
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.