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Cryptocurrency Regulatory Update for an emerging asset class
from Bell Wealth Q3 2023
by Bell Bank
As we mentioned in our cryptocurrency article in in the second quarter of last year, the regulatory environment surrounding pooled investment vehicles for cryptocurrencies is murky. Many retail and institutional investors are waiting for an exchange traded fund (ETF) or mutual fund option as a way to gain cryptocurrency exposure inside a wealth account. Doing so would offer investors the ability to buy and sell cyrptocurrencies, like Bitcoin, as easily as a share of stock. Today, no ETF or mutual fund exists that invests directly in cyptocurrency. There are a few closed-end funds available, as well as an ETF that invests in future contracts, but there is no direct exposure that is easily accessible.
Asset managers continue to file applications with the SEC to create “spot” Bitcoin ETFs, but have been unsuccessful in gaining approval. This summer, Blackrock, Fidelity, WisdomTree, VanEck, Invesco and Ark Investment Management have all applied, with no success. Although it does appear that a crypto option is getting closer, the main obstacles are surveillance and ways to combat fraud and market manipulation.
By Nathan Erickson SVP/Director of Investment Strategy
Bell Bank Wealth Management will continue to monitor this emerging asset class and its impact on investment markets.
