The SEC nowadays is paying a special attention to exchange-traded funds, and they might tighten up the rules. Increased regulation of funds could occur in the near future, but how it will affect on all Bitcoin ETFs on the market today?
Recent events are compelling the institution to toughen regulation on the popular funds, thinks SEC Chairwoman Mary Jo White. Of course, this will affect on stock and bonds trading at greater extent, but it may reach far beyond the scope of traditional finance, and involve crypto currencies such as Bitcoin.
Due to the increased number of exchange-traded funds over the past ten years, this decision was announced during Friday’s meeting. According to the SEC, tightening of regulation is necessary and justified because of grate amount of global currencies in net assets tied up in these funds. However, there were no details revealed as to how these changes will affect on ETFs, or when they will be implemented.
All in all, the SEC is turning their attention at exchange-traded funds not at the first time, as they announced a more meticulous investigation of these investment in January of 2016. “All of these funds have been quite profitable and popular in their own right, they are not without some turbulence”, said Mary Jo White.
The study has been carried out to points of the role of market makers in ETFs over the past few years, as well as possible investors’ understanding of these vehicles. So, the ETF market has felt a great pressure since December of last year, though this study was not aggressive anyway. The SEC had announced their decision to suppress on how investment funds use derivations. Therefore, some ETFs might have to be moved away from the exchanges, if this were to take place.
How every ETF would have to obey with a portfolio limitation, is the most exciting question in these pendant restrictions. There is no doubt that Bitcoin ETFs look like a victims of this proposal in the long run. And of course , this would not be profitable for the most popular funds, that are traded on an exchange. However, this only remains a proposal today, well then will wait for future developments and changes.