The US Securities and Exchange Commission (SEC) has increased its scrutiny on exchange-traded funds, finding several occasions where blockchain was misleadingly used in the name, reported Bloomberg.
Thematic ETFs are one of the hottest markets, and the SEC has increased its regulatory oversight to avoid the creation of misleading entities. An ETF derives its value from any underlying asset, from gold to 5G networks.
The hot money flowing into funds meant that even the name of the fund could lead to a mistaken understanding, leading to the SEC intervention.
“We get questions more than we used to where we have to be able to defend our name,” said J. Garrett Stevens, CEO of Exchange Traded Concepts, a creator of up to 26…
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