Summary
Two US Senators are urging the SEC to halt future crypto fund approvals due to misleading marketing of spot bitcoin ETFs. They are concerned about the risks posed to investors and want better communication and regulation. The fate of potential future crypto ETPs is uncertain, with a focus on ether ETFs. The SEC has delayed ruling on proposed ether ETFs, with a decision expected in May.
Key Points
1. Two US Senators are urging the SEC to halt future crypto fund approvals due to concerns about how spot bitcoin ETFs have been marketed.
2. The senators believe that there are “alarming deficiencies” in communications to investors within the crypto asset class and are asking the regulator to refrain from approving more exchange-traded products linked to other crypto assets.
3. The SEC is considering applications for ETFs that would hold ether directly, with Grayscale Investments having previously obtained a court victory against the SEC in a decision that helped lead to the approval of US spot bitcoin ETFs.