Another institution files for a cryptocurrency ETF on the U.S. trading floor. The pressure on the SEC is getting clearer.
Victory Capital joins the stakes
Another application for a cryptocurrency exchange-traded fund has appeared at the Securities and Exchange Commission (SEC). This time, it was filed by investment firm Victory Capital Management.
As reported by the company’s representatives, the premise outlined in the application is to continue listing an ETF that tracks the NASDAQ Crypto Index. This is all in a speech with the Brazilian fund manager Hashdex. Importantly, this is not an index focused solely around Bitcoin, but accumulates 8 different cryptocurrencies. These are Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Stellar (XLM), Filecoin (FIL) and Uniswap (UNI).
As Mannik Dhillon, president of ETF provider Victory Capital, comments, the potential launch of the offering is designed to give clients comfortable exposure to several coins while introducing a new asset class to their portfolios.
Victory Capital Holding is a financial services company listed on NASDAQ under the acronym VCTR. Although it was founded in 2013, the company already managed the equivalent of $161 million in assets as of the end of the second quarter of this year. Victory Capital is another entity applying to the SEC to open an ETF in the cryptocurrency space.
The SEC and its stance on bitcoin ETFs
The SEC in the crypto community is a very well-known financial authority. This U.S. regulator is famous in recent times, for example, for the court case it is pursuing against Ripple, the issuer of the XRP token.
The SEC is also the institution that issues permits for the introduction of new financial instruments on the American trading floor. The commission has recently been responsible for regularly dismissing applications for ETFs on Bitcoin. You can read more about this case in the article under the title “Bitcoin ETF”.
The recognition of such a type of fund in the U.S. exchange-traded space has long been awaited by the entire market. The more so, that similar instruments already exist in Canada, Brazil, as well as Switzerland.
What is an ETF?
ETF (Exchange Traded Fund), is an increasingly popular type of investment fund, designed to reflect the value of the index it represents. It gives exposure to the index. It can also find coverage in the actual object of its trading. It simplifies investment values. A potential Bitcoin ETF, is a chance for large investors to participate in the cryptocurrency market, without having to set up accounts on specialized exchanges for this purpose. An ETF on BTC would not require knowledge of devices such as hardware wallets, at least. Consequently, this is an opportunity for this particular asset to go out, to a much wider audience.
