US regulators are still on the fence about cryptocurrencies. The US Securities and Exchange Commission (SEC) has begun to approve bitcoin-themed exchange-traded funds (ETFs), but with important caveats. Last week the SEC gave the nod to the Volt Crypto Industry Revolution and Tech ETF, says Hassan Maishera on FXEmpire. The ETF will offer investors exposure to some of the leading crypto firms on the market, such as Nasdaq-listed MicroStrategy. But the SEC has still yet to approve any cryptocurrency ETF “that seeks to directly track the performance of bitcoin”.
Investors use ETFs to track the performance of assets such as gold or equities, says Nathan Reiff on Investopedia. For all the hype, bitcoin remains difficult to invest in, requiring investors to turn to specialised exchanges and deal with “complex storage and security procedures”. A bitcoin ETF would allow a much larger pool of investors to buy bitcoin in the same way and on the same platforms where they trade stocks.
The approval of “bitcoin lite” ETFs such as Volt is a “sop” to investors, says Steve Johnson in the Financial Times. US regulators are still refusing to approve any ETFs “that invest in the cryptocurrency itself”, even though similar vehicles have already been launched in Canada and parts of Europe. SEC chair, Gary Gensler, has called cryptocurrencies a “wild west” and an “asset class…rife with fraud, scams and abuse”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
The best real estate opportunities to invest in for 2026House price growth may be slowing but offices and online shopping are driving growth in real estate investment
-
Asia's new tiger economy: MoneyWeek TalksPodcast MoneyWeek's editor, Andrew van Sickle, speaks to Dragon Capital's Thuy-Anh Nguyen about Vietnam's remarkable rise
-
Leading European companies offer long-term growth prospectsOpinion Alexander Darwall, lead portfolio manager, European Opportunities Trust, picks three European companies where he'd put his money
-
How to harness the power of dividendsDividends went out of style in the pandemic. It’s great to see them back, says Rupert Hargreaves
-
Why Trustpilot is a stock to watch for exposure to the e-commerce marketTrustpilot has built a defensible position in one of the most critical areas of the internet: the infrastructure of trust, says Jamie Ward
-
Tetragon Financial: An exotic investment trust producing stellar returnsTetragon Financial has performed very well, but it won't appeal to most investors – there are clear reasons for the huge discount, says Rupert Hargreaves
-
How to capitalise on the pessimism around Britain's stock marketOpinion There was little in the Budget to prop up Britain's stock market, but opportunities are hiding in plain sight. Investors should take advantage while they can
-
London claims victory in the Brexit warsOpinion JPMorgan Chase's decision to build a new headquarters in London is a huge vote of confidence and a sign that the City will remain Europe's key financial hub
-
Reinventing the high street – how to invest in the retailers driving the changeThe high street brands that can make shopping and leisure an enjoyable experience will thrive, says Maryam Cockar
-
The consequences of the Autumn Budget – and what it means for the UK economyOpinion A directionless and floundering government has ducked the hard choices at the Autumn Budget, says Simon Wilson
