SEC rejects applications for cryptocurrency ETF

The SEC is in no hurry to authorize the opening of the first crypto exchange-traded fund (ETF). The organization explains this decision by the likelihood of misconduct by players in the market of digital assets. 

A bitcoin investment fund buys Bitcoin and sells its securities to investors. Owners of such shares will be able to make money on further changes in the value of the main digital currency. 

Many investment companies have applied to the SEC to open a crypto fund. However, for 3 years, not a single request has been approved. Now, the organization has accepted applications from several companies for consideration:

• ARK Invest;
• One River;
• VanEck;
• Fidelity.

Experts note that the likelihood of opening Bitcoin-ETFs increases as the economy emerges from the crisis. Until that happens, investors, according to analysts, tend to invest in stock market assets rather than cryptocurrency assets. In the latter, at the moment we can observe stagnation, provoked by the bitcoin price halving in recent months.