A new SEC filing shows that Ark investment will soon launch an offering that allows investors to participate in Canada-based crypto ETF. The proposal remArks that investors must know that this fund offering and a direct bitcoin holding offer similar risks.
Risks And Investor Interest
It also reiterated that this offering might trade at a top premium or a discount to BTC’s net asset value. The New York-based investment platform manages more than $50B in crypto assets.
Many consider digital asset ETFs the best way to get exposed to the crypto mArket without direct involvement. Since financial regulators in all regions are concerned about investors’ protection, ETFs must offer tougher policies to prevent mArket manipulation.
America Still Hesitating On Crypto Etfs
Currently, the most popular crypto ETFs are found in Canada, Brazil and France (the EU approved France crypto ETF). However, it is strange that America’s top financial regulator is yet to approve any ETF despite having one of the highest percentages of crypto holders. While more than 12 ETFs proposals have been submitted to the US SEC, none is yet to be approved.
Sadly, it doesn’t look like the regulatory body will approve any ETF proposal soon. The SEC chief continues to reiterate that until there is proper regulation for the digital asset industry, he won’t approve any of the ETF proposals on his desk. The good news is that US legislators are developing a regulatory policy for the industry.
While the SEC is still waiting for the legislature’s crypto policies, top institutional investment firms are eager to run an ETF investment. Last July, Goldman Sachs sent its DeFi-based ETF proposal to the SEC. Hence, investors are optimistic that the SEC will approve one of the ETF proposals on its table sooner than later.
UK-Based Hedge Fund Launches Cryptocurrency Arm
Brevan Howard, a top UK hedge fund firm, has appointed Colleen Sullivan to head its newly created cryptocurrency division termed by digital. Aron Landy, Brevan Howard CEO, commended Sullivan’s choice as the best candidate to move the company’s digital asset division in the right direction.
The CEO said that “Sullivan’s experience will be highly beneficial to our clients, and it shows the extent we are willing to go to help our investors maximize the opportunities in this digital asset space. Landy further said that Brevan Howard diversified into the crypto space after identifying huge opportunities there in the present and the future.
Visa CEO Optimistic About Digital Currencies
Visa CEO, Alfred Kelly, has opined that visa isn’t only interested in cryptocurrencies but also wants to be part of the next technological evolution in the financial industry. Kelly made this disclosure during a recent interview on a popular finance podcast.
Kelly further said, “no one knows for sure whether cryptocurrencies will exist in the next six years or whether they will explode. But what I am sure of is that our company will always be at the forefront of any technology that would modernize the FinTech ecosystem.”