For the first time in history, the Latin American and Arab regions have taken bigger steps in the cryptocurrency industry by starting off trading on Bitcoin Exchange Traded Funds. In Brazil, QR Capital had its ETF approved today while in Dubai, a Canadian asset manager 3iQ listed theirs.
The breakthrough marks a new beginning for crypto-related activities in these regions. The firms that have been approved to trade the funds in Dubai and Brazil all hold respectable positions. The Canadian 3iQ for instance holds over $1.5 billion under management.
3iQ has been a consistent platform, in April the firm in partnership with CoinShares launched a BTC and Ethereum ETF that trades on the Toronto Stock Exchange. Similarly, QR Capital is approved in Canada. The asset manager claims its ETF to be a turning point for both the crypto market and the traditional finance world.
Why SEC is Holding Back on ETF Approval
Brazil and the city of Dubai are now before the United States in the approval of Exchange Traded Funds. The United States Securities and Exchange Commission has rejected or is withholding the approval of every Bitcoin or Ethereum ETF application on its desk.
VanEck for instance has had its ETF application delayed by the regulatory body. WisdomTree, which is second on the SEC list for Ethereum ETF, hasn’t been approved yet. The opposite is the case in Canada, the nation has been open to the acceptance of traded funds and has given a good number of applicants the “go-ahead” nod.
SEC says the delay emanates from fear that the cryptocurrency market is still young and very much volatile.
The organization’s commissioner Hester Peirce when asked the reason for the holdup in ETF approval said “we have insisted on increasingly sophisticated analyses of the relationship between the underlying spot market and the futures market to determine the susceptibility of these markets to fraud and manipulation.”