Renault says electric cars will dominate its sales by the end of the decade.
Banks and investment managers say clients are clamoring for cryptocurrency products, with Citigroup and Goldman Sachs among those launching new services for wealthy clients and institutional traders in recent weeks. But in the United States at least, the prospects for regulatory approval of a truly mainstream crypto investment vehicle, a Bitcoin exchange-traded fund, remain unclear. And it’s not for lack of trying, the DealBook newsletter reports.
Ark Invest is the latest firm to pitch a Bitcoin E.T.F., with the buzzy fund management company run by Cathie Wood proposing an E.T.F. in partnership with 21Shares that tracks the cryptocurrency’s price, according to a filing this week. It joins other established brands like Fidelity and VanEck in asking the Securities and Exchange Commission to approve Bitcoin E.T.F.s, which would give investors exposure to Bitcoin without having to hold the cryptocurrency directly, like the many funds that track the price of gold or oil.
The first to file for S.E.C. approval of such a vehicle, in 2013, were the Winklevoss twins of Facebook fame, who founded the crypto exchange Gemini. This month, the S.E.C. delayed for the second time a decision on VanEck’s request as the agency collects public comments on Bitcoin markets’ liquidity, transparency and susceptibility to manipulation. Bitcoin’s recent volatility likely isn’t helping.
Regulators’ concerns are “outdated and misplaced,” given significant trading volume sand established exchanges with reliable pricing, Matthew Sigel, the head of digital assets research at VanEck, told DealBook. “E.T.F.s are generally the most liquid and transparent way to get exposure to many kinds of assets,” he said. “If we agree that E.T.F.s are good, then why should Bitcoin be unique in its exclusion?”
Brazil just approved a Bitcoin E.T.F., the first in Latin America, and Canada has a few. Britain, like the United States, is taking it slow. Crypto rules do not appear on the S.E.C.’s latest agenda.
Article source: https://www.nytimes.com/live/2021/06/30/business/economy-stock-market-news/