The cryptocurrency market is expected to witness a significant development as new batches of cryptocurrency stock exchange funds (ETFs) from Rex and Osprey are set to start trading by Friday. According to Eric Balchunas, an analyst, the “post-effective” status of these funds means that they will essentially begin trading, barring any last-minute objections from the US Securities and Exchange Commission (SEC). The lineup of ETFs includes the Rex-Fosprey Bonk ETF, Trump ETF, Bitcoin ETF, XRP ETF, and Doge ETF.
The DogeTf, which debuted on Thursday, is part of the 1940 investment company structure, allowing it to bypass the more stringent approval process for Spot Bitcoin (BTC) ETFs. As Balchunas explained, “This is a ’40 act that does not invest directly in Spot. As long as the SEC says nothing, you can start it 75 days after submission.” This means that if the SEC does not raise any objections, the funds should list this week.
Understanding the SEC’s Role in ETF Approvals
Most US ETFs are organized under the ’40 Act and operate as open-end investment companies, holding securities such as futures-based assets. In contrast, ’33 Act ETFs are typically used for physically backed commodities, including Spot Bitcoin and gold products. The SEC’s clarification on the 75-day review window has provided a clearer timeline for ETF approvals. However, the agency has delayed decisions on several high-profile ETF applications from Franklin Templeton, Blackrock, and Fidelity, citing the need for additional time to evaluate the proposals.
James Seyffart, a Bloomberg ETF analyst, notes that there are currently 92 crypto-exchange products in the US pipeline. The delays in ETF approvals come about a month after the SEC clarified that certain liquid assets outside the securities laws fall beyond its supervision. In May, the agency also concluded that blockchains and their native assets do not represent securities.
The SEC’s decisions on ETF approvals have significant implications for the cryptocurrency industry. As the market continues to evolve, it is essential to stay informed about the latest developments and regulatory updates. For more information on the Rex and Osprey ETFs and the SEC’s role in their approval, visit https://cointelegraph.com/news/rex-osprey-etfs-launch-friday-sec-last-minute-objection-bloomberg-analyst?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
Implications for the Cryptocurrency Industry
The launch of the Rex and Osprey ETFs is expected to have a significant impact on the cryptocurrency market. As more institutional investors enter the market, the demand for cryptocurrency assets is likely to increase. However, the SEC’s delays in approving other ETFs may indicate a more cautious approach to regulation. As the industry continues to navigate the complex regulatory landscape, it is essential to stay informed about the latest developments and updates.
For the latest news and updates on the cryptocurrency market, including the launch of the Rex and Osprey ETFs, visit https://cointelegraph.com/news/rex-osprey-etfs-launch-friday-sec-last-minute-objection-bloomberg-analyst?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
