SEC needed Two ETF funds to remove the word “Blockchain” off their Tickers

- Advertisement -

The U.S. Securities and Exchange Commission (SEC) has demanded two exchange-traded funds (ETFs) to remove the term”Blockchain” in their tickers. The data had been released by Bloomberg a couple of days back.

ETFs have to Remove the “Blockchain” Word Out Of Their Tickers

Exchange traded funds became remarkably popular with investors who wanted to get access into this blockchain world. These investment tools let curious users have exposure to the blockchain ecosystem.

The U.S. Securities and Exchange Commission is attempting to keep under control the investment resources offered on the market to investors. According to Bloomberg, over 10 percent of those new ETFs published in 2018 were associated to a certain theme.

On the Topic, J. Garret Stevens, Chief Executive Officer of Exchange Traded Concepts, commented:

“We get questions more than we used to where we have to be able to defend our name. Now almost all names, they’ll come back and say ‘Can you justify, give us your explanation on why this name is OK?’”

Sometimes, ETFs opt to create catchy titles to receive a larger focus from investors. Nonetheless, it would appear that the U.S. SEC has been quite strict about how firms manage these difficulties. In accordance with the Investment Company Act of 1940, issuers can't utilize “materially deceptive or misleading” names.

Also Read: Japan’s Resona Bank Abandons work with Ripple-Based Payment App MoneyTap

SEC Commissioner Hester Peirce clarified that names must match up to what the fund will. The regulatory agency must restrain it and it may issue a stop order to stop capital from providing the shares to investors when there are a few issues with it.

Two funds have been invited to take out the term”blockchain” in their titles. Citing people knowledgeable about the issue, Bloomberg noted that the Amplify and Truth Shares ETFs referenced dispersed ledger technologies (DLT) if they registered their initial records to be accepted. Nonetheless, they needed to alter those titles for the SEC to approve these afterwards.

It's worth noting that there have been several firms on the market which chose to incorporate the term “blockchain” in their titles so as to obtain the eye of the marketplace. One of those companies was Long Island Iced Tea which altered its title into Long Blockchain Corp. Following it, its inventory registered a cost growth of 200 percent. Nevertheless, the business was already fined.

Also Read: Binance Labs supports 3 Open-Source Blockchain Startups by offering $45,000

- Ad -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -
- Advertisement -

The Investment of the Decade by Teeka Tiwari: What Is It?

Teeka Tiwari's Investment of the Decade is a new special broadcast of his highly popularly, wildly successful Palm Beach Letter newsletter research program. While there...

How to Earn Bitcoin: 27 Best Ways to Get Paid in Crypto (2020)

Most assume the only way to get bitcoin is to buy it. However, as this guide will show, there is a multitude of ways...

Best Blockchain Stocks: Top Blockchain Companies for Investors in 2020

Ten years ago, no one had heard of “blockchain”. Over the last five years, however, blockchain has been one of the biggest trends in...

Latest News & Updates

Fry's Investment Report: Eric's Secrets of the Richest Zip Code Portfolio Winners

Editor, Eric Fry recently took to a "Secrets of the Richest Zip Code" presentation in the desire to unveil an investment opportunity he deems...

Wealth Breakthroughs: 9-Part Video Series from Millionaire Entrepreneurs

Wealth Breakthroughs is a nine-part video series featuring wealthy individuals from around the world. The webinar series claims to teach anyone how to claim “complete...

Recovery Investing Event: Whitney Tilson's COVID-19 Market Strategy Event is May 28th

The Recovery Investing Event is an investment analysis webinar scheduled for May 28. During the webinar, investors will discover “the exact day to buy any...

Supernova by Timothy Sykes: Morning Dip Buying Penny Stock Pattern

Tim Sykes is the world's most famous celebrity penny stock trader and is hosting his 9:30AM Profits Summit on May 27, 2020. This morning...

Every investment is risky and carries a real chance at losing or gaining. None of the information here is to be considered investment advice. Seek a professional investment advisor consultation before making any investment.

No GainBitcoin contributor is licensed under securities laws and is not qualified to give personal investment advice. Read the about page and all accompanying policies for more details.

More Articles Like This

Best Blockchain Stocks: Top Blockchain Companies for Investors in 2020

Ten years ago, no one had heard of “blockchain”. Over the last five years, however, blockchain has been one of the biggest trends in...

How to Earn Bitcoin: 27 Best Ways to Get Paid in Crypto (2020)

Most assume the only way to get bitcoin is to buy it. However, as this guide will show, there is a multitude of ways...

Teeka Tiwari's The Final 5: 5 Coins to $5 Million Jetinar Details

Teeka Tiwari's The Final 5: 5 Coins to $5 Million Jetinar Palm Beach Research Group's Teeka Tiwari is hosting his 5 Coins to $5 Million:...

The Investment of the Decade by Teeka Tiwari: What Is It?

Teeka Tiwari's Investment of the Decade is a new special broadcast of his highly popularly, wildly successful Palm Beach Letter newsletter research program. While there...

Profit Prism Platinum: Raging Bull's Jeff Williams' 3PM Profit Scan Webinar is May 28th

How would the average trader feel about making up to ten times what other traders but in only a small amount of the time?...

Wealth Breakthroughs: 9-Part Video Series from Millionaire Entrepreneurs

Wealth Breakthroughs is a nine-part video series featuring wealthy individuals from around the world. The webinar series claims to teach anyone how to claim “complete...

Tim Sykes' Millionaire Challenge: Penny Stock Trading Strategies for Students

The Tim Sykes Millionaire Challenge is a money-making program that teaches investors how to make a major profit with exclusive access that they must...

Fry's Investment Report: Eric's Secrets of the Richest Zip Code Portfolio Winners

Editor, Eric Fry recently took to a "Secrets of the Richest Zip Code" presentation in the desire to unveil an investment opportunity he deems...