Cryptocurrency space pending approval of the Bitcoin (BTC) ETF, a new application has been submitted for a fund based on an altcoin project. It is eagerly awaited whether this application made to the US Securities and Exchange Commission (SEC) will be accepted. Here are the details…
An ETF application has been filed based on this altcoin project
Experts say that an SEC-approved Bitcoin ETF, the exchange-traded fund, has a long history in gaining the trust of investors and driving the overall growth of the crypto industry. He believes he will go a long way. However, the SEC has approved any of the many previous applications for a Bitcoin ETF. As we have also reported as Kriptokoin.com, only funds based on BTC futures were accepted and traded.
However, there is movement towards ETFs in the altcoin area as well. The latest of these applications is a digital Bitcoin ETF application built on altcoin Algorand (ALGO). The application was filed by Digital Funds LLC, a Florida-based company. The application titled “The Digital Funds S&P 500® Bitcoin 75/25 Index ETF” was filed on April 12, 2022. The ETF offers to invest 75 percent of its assets in “the major US companies that make up the S&P 500 Index.” The remaining 25 percent will be invested in Bitcoin futures contracts.
Can this ETF be approved?
It is worth noting that the shares of this ETF are tokenized and registered on the Algorand Blockchain. According to the details of the application, shares can be bought, sold or transferred on a peer-to-peer basis, such as trading cryptocurrencies on Algorand. The proposed Bitcoin ETF is a futures ETF that does not fit the definition of a traditional Bitcoin ETF. According to experts, the fact that this is a futures ETF could increase its chances of being approved despite being the last of all applications.
In this ETF, Algorand’s instant certainty feature, besides eliminating middlemen, enables Blockchain permission by giving less liquidity to tokenized shares, which reduces counterparty risks. eliminates it. If approved, the ETF will use Algorand’s Blockchain to ensure transparency and prevent fraud, which will help mainstream investors be more confident in using it.
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