What Will Happen To Crypto ETFs?

What Will Happen To Crypto ETFs?

+1 in the SEC

The U.S Senate confirmed Elad Roisman (Republican) as a new member of the Securities and Exchange Commission (SEC). He will join three other Commissioners: Jay Clayton (Independent candidate), Robert Jackson Jr. (Democrat) and Hester Pearce (Republican). Thus, now the Commission is dominated by Republicans. The fifth member of the Commission has not yet been appointed.

In late July, Roizman urged for examination and re-examination of existing rules and regulations related to data protection, cybersecurity and the emergence of new investments and technologies such as initial coin offerings and blockchain.


Why is it important?

Changes like these can seriously affect the outcome of voting on the issue of cryptocurrency ETFs. Now three out of four candidates have positive attitude towards the traded funds: Hester M. Peirce previously supported the ETF approval, Jay Clayton is also positive about the funds. This means that crypto ETFs can be approved earlier than experts suggest making bets for 2019.


The new SEC regulation

Following the the new candidate appointment, the SEC repotedly banned trading of XBT Provider’s Bitcoin and Ether Tracker One for 10 days (until September 20).

Bitcoin Tracker One and Ether Tracker One are exchange-traded notes (ETNs) that track bitcoins and ether.

The Commission justified  its decision by saying that some non-professional retail investors mistakenly believe that CXBTF and CETHF are equivalent to ETF and asked brokers, shareholders and potential purchasers to be cautious.


Why is it important?

The SEC is acting cautiously, showing its concern for investors, but, most likely, there is something more behind this. In any case, it is important to understand that the positive effect of the first news outweighs the negative effect of the second one.


Have a good week!