Bitcoin ETF Hopes Rise as Investors Move to Nontransparent ETFS 

Bitcoin ETF Hopes Rise as Investors Move to Nontransparent ETFS 
фото показано с : beincrypto.com

2020-1-27 16:18

Hopes for a Bitcoin Exchange Traded Fund (ETF) have risen as investors have begun to participate in nontransparent ETFs. The move to this new segment of the market indicates a shift from the traditional fund concept.

ETFs generally publicly disclose their holdings in order to lure investors to buy the fund. However, this recent development allows funds to hold a portfolio without disclosing its contents. While this may seem untenable for investors, many fund managers have seen this as the only viable option.

The new concept is widely appreciated by traders who are often unhappy about needing to disclose their trading strategy. Investors in these funds are often unaware of the complexities of the strategy anyway. But for traders, transparent ETFs give away their most valuable secrets.

The nontransparent variety allows traders to protect their private strategies, while still offering investors participation. This, though, begs the question regarding investor willingness to participate blindly. However, investors appear more willing than ever to risk participating in the funds, based largely on trader reputation.

Of course, this type of fund begs the question regarding investor risk levels. While it may shield traders, the Securities and Exchange Commission (SEC) is generally more focused on investor protection. Allowing this type of fund is a sign that the commission is moving toward more aggressive investment approaches.

This newest fund style has generated new hopes of a Bitcoin ETF approval from the SEC. The previous attempts have all failed to pass muster. According to Jan van Eck, CEO of Van Eck Associates, nothing will materialize in the near future.

Others, though, are hopeful that current Bitcoin market movers will be able to get an ETF approved. The most recent hopes center around Grayscale Investments, the Digital Currency Group-owned financial management company, as BeInCrypto has previously reported.

As the market moves further from traditional methodologies, the potential for Bitcoin rises. While it may take some time, the approval of nontransparent ETFs seems to indicate that a Bitcoin ETF could well be in the cards.

The post Bitcoin ETF Hopes Rise as Investors Move to Nontransparent ETFS  appeared first on BeInCrypto.

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