Brazil and the United Arab Emirates (UAE) launch the first tradable exchange-traded funds (ETFs) for bitcoin, previously approved by regulators.
A bitcoin exchange traded fund called QBTC11 from QR Capital was approved by the Brazilian Securities and Exchange Commission (CVM) back in March. It has now started trading on the Brazilian Stock Exchange (B3).
Dubai also gave the green light to launch the first cryptocurrency ETF from 3iQ, a Canadian firm that manages around $ 1.5 trillion in digital assets. This product has become available for trading on the Nasdaq Dubai International Stock Exchange. 3iQ CEO Fred Pye said that if crypto-pegged ETFs were popular, the fund would be much larger.
Canada was one of the first countries to allow the launch of Bitcoin and Ether ETFs. Many companies and investors are hoping that US regulators will also approve such funds this year. However, the US Securities and Exchange Commission (SEC) has repeatedly rejected applications to launch crypto ETFs because of fears of market manipulation. To date, the SEC is considering nine applications from firms ready to launch ETFs on bitcoin, but this is not the first time the agency has postponed making a final decision on each of them.
Even SEC Commissioner Hester Peirce, in a recent interview, was unable to clearly answer the question of what rules firms need to follow in order to get regulatory approval to launch a tradable bitcoin exchange-traded fund. She also found it difficult to name the factors hindering the emergence of such instruments in the American financial market. Therefore, investor expectations about the launch of cryptocurrency ETFs in the US may be in vain.
According to the Minister of Digital and Financial Services of Gibraltar, if the US regulators approve the launch of ETFs on Bitcoin, then other countries will follow their example en masse. This can lead to regulatory problems for such products.
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