ETF
Law Decoded: Making sense of mixed signals, Dec. 13–20
The crypto regulation regime in any jurisdiction is an equilibrium among multiple institutional, group and personal interests of actors who have a sway over financial and monetary policies. These interests never perfectly align, frequently resulting in contradictory signals coming out of various power centers. Speaking about systemic risks facing the world’s largest economy last week, the United States Federal Reserve chair said digital assets were not a financial stability concern. Two days later, the U.S. Financial Stability Oversight Council issued a report that concluded that stablecoins and decentralized finance could pose sizeable financial stability risks. The source of this discrepancy could lie in the fact that the Fed’s mandate is to maintain a robust economy, while the FSOC, whi...
Law Decoded: Making sense of mixed signals, Dec. 13–20
The crypto regulation regime in any jurisdiction is an equilibrium among multiple institutional, group and personal interests of actors who have a sway over financial and monetary policies. These interests never perfectly align, frequently resulting in contradictory signals coming out of various power centers. Speaking about systemic risks facing the world’s largest economy last week, the United States Federal Reserve chair said digital assets were not a financial stability concern. Two days later, the U.S. Financial Stability Oversight Council issued a report that concluded that stablecoins and decentralized finance could pose sizeable financial stability risks. The source of this discrepancy could lie in the fact that the Fed’s mandate is to maintain a robust economy, while the FSOC, whi...
Valkyrie’s latest ETF offering has exposure to Bitcoin
Crypto asset manager Valkyrie has launched an exchange-traded fund with exposure to Bitcoin on the Nasdaq Stock Market. In a Wednesday SEC filing, Valkyrie said its Balance Sheet Opportunities ETF will not invest directly in Bitcoin (BTC) but 80% of its net assets would offer exposure to the crypto asset through securities of U.S. companies with BTC on their balance sheets. These companies may include custodians, crypto exchanges, and traders. The filing specifies that Valkyrie’s ETF may invest up to 10% of its net assets in securities of Bitcoin mining firms, as well as up to 5% in the securities of pooled investment vehicles in the U.S. that hold BTC. At the time of publication, shares of the fund under the ticker VBB are trading for $24.48, having fallen more than 1.5% since launch...
Bank of Russia to ban mutual funds from investing in Bitcoin
The Russian central bank continues its strict policies regarding the cryptocurrency industry, now officially banning mutual funds from investing in cryptocurrencies like Bitcoin (BTC). On Dec. 13, the Bank of Russia published an official statement on regulating investment opportunities by mutual investment funds. Despite expanding the number of assets available for investment by mutual funds, the document prohibits fund managers from buying cryptocurrencies as well as “financial instruments whose value depends on prices of digital assets.” The statement emphasizes that mutual funds are not allowed to provide crypto exposure both to either qualified or unqualified investors. The Bank of Russia previously recommended asset managers to exclude cryptocurrencies from exposure in mutual funds in...
Point of no return? Crypto investment products could be key to mass adoption
The first Bitcoin (BTC) futures exchange-traded fund (ETF) was launched in the United States back on October 19, 2021. Since then, a number of other cryptocurrency investment products have been launched in various markets. That first ETF, the ProShares Bitcoin Strategy ETF, quicklybecame one of the top ETFs of all time by trading volume on its debut, and soon after, several other Bitcoin futures ETFs were launched in the United States, providing investors with different investment options. To Martha Reyes, head of research at cryptocurrency trading platform Bequant, these options are important. Speaking to Cointelegraph, Reyes pointed out that in traditional finance, ETFs have “proved to be incredibly popular in recent years, with ETF assets expected to reach $14 trillion by 2024.” Reyes s...
