The SEC approves a new Bitcoin derivatives Fund
The SEC may be slow to approve a bitcoin ETF, but that hasn't stopped them from approving a bitcoin derivatives fund.
In news announced late the other day, it was revealed that the SEC has approved the futures-focused NYDIG Bitcoin Strategy Fund.
The approval will give the fund the right to sell shares to institutional investors.
The full release can be seen here:
Some details....
NYDIG is now authorized to sell shares to qualified investors.
There is no minimum investment required.
The fund will seek to invest in bitcoin cash settled futures products that are registered with the CFTC.
Which sounds like the majority of investments will be done via the CME bitcoin futures products.
Earlier this year NYDIG Execution (a subsidiary of NYDIG) was granted the much sought after BitLicense.
This allows the company to provide custody and execution services within the state of New York.
Something that likely will be very valuable for the company as New York is arguable the financial capital of the world.
Paves the way for a bitcoin ETF?
This likely does help further the case for a bitcoin ETF.
The SEC approved a fund that is using CFTC registered products.
Which likely means that is their major issue with why they haven't approved a bitcoin ETF as of yet. They don't feel comfortable with the spot market pricing of bitcoin.
If someone offers an ETF product that is tied to CFTC registered products, they may be more likely to approve it.
Either way, the more products that get approved the higher the likelihood that a bitcoin ETF is on the way as well.
Stay informed my friends.
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This approval could spell good things to come on the regulatory space of cryptocurrencies. As the SEC's considering a review of their own rejection of Bitwise's Bitcoin ETF, maybe this could be a catalyst for them to actually approve an ETF soon.
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They did that in the past as well (a review of their rejection) and it ended up still being rejected, I am not very high on it for the time being. Though I think the fact funds are getting approved likely means we are getting closer to an ETF as well.
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I'm still optimistic, though I do share some skepticism in that. Nevertheless, an ETF isn't necessarily the only instrument for getting cryptos onto the mainstream, so any rejection won't have too much of an effect for the time being.
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Correct, and I believe an ETF getting approved is not priced in the markets at all. So, there is only upside if one does. The market fully expects one not to be approved for the foreseeable future.
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Why is getting mainstream important? Are you only thinking about the price? What good is there if the only exposure to bitcoin is thru a trusted permissioned legacy financial instrument? No immutability, no anonymity. That's not a win for crypto.
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Thanks.
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