Two U.S. Investor Managers Cancel BitCoin ETF

There are concerns about liquidity and valuation of futures contracts based on digital assets.
Investors and financial players are pressing the CFTC to rein in the growing risk posed by bitcoin to the financial system.

Two investment managers from the United States (USA) abandoned their intention to launch an exchange trade fund (ETF). The reason is that the U.S. Financial Market Supervisory Authority, the Securities and Exchange Commission (SEC) does not approve the issuance of such investment instruments.

Supervisory Board staff said there were concerns about liquidity and valuation of futures contracts based on digital assets. The move is a new hurdle for Wall Street companies to offer products to investors interested in cryptocurrencies.

The SEC and U.S. futures exchange authority the Commodity Futures Trading Commission (CFTC) have been scrambling to deal with these relatively new assets. But no one has been able to fully manage. The SEC is the authority that regulates capital markets and the CFTC regulates futures contracts.

Investors and financial players are pressing the CFTC to rein in the growing risk posed by bitcoin to the financial system. The SEC's policy of rejecting the issuance of ETF mutual funds is in the investor spotlight because it blocks products with high volatility.