Just like the price of Bitcoin (quotation BTC) continues to make new highs with each passing day, investment firms around the world are working to bring Bitcoin exchange-traded funds (ETFs) to the market. Pulling the regulatory strings, the Swedish financial watchdog - Financial Supervisory Authority (FSA) - warned investment firms to think twice before selling their cryptocurrency-based ETF products.
The warning from the FSA
In the FOMO triggered by rising prices, investors are entering the crypto space at an unprecedented rate. According to a Bloomberg report, the FSA in a recent statement said it "will take action against companies that sell risky and complex instruments to retail investors who don't understand what they are getting into."
The Swedish regulator has called for further regulation in this area. He added that ETF-like investment instruments are "unsuitable for most, if not all, consumers." The FSA added that as retail buyers of such (volatile) investment products follow the market, "the risk of large losses increases dramatically."
Everyone wants a piece of cake
The Bitcoin ETF craze has increased recently due to the rapid rise in the price of BTC. Additionally, Sweden is home to the largest Bitcoin ETF product - the $ 1,7 billion Bitcoin Tracker EUR - listed on the Stockholm Stock Exchange.
Therefore, with the recent frenzy that has been around, the FSA has begun to review crypto-based investment tracking products. It found that they need to work further in this direction as current requirements are not sufficient to lessen the risks that buyers currently face.
Growing Bitcoin ETF Popularity in North America
The demand for Bitcoin ETFs has increased tremendously in the North American market in recent times, particularly in Canada. The Bitcoin ETF funds launched by Purpose Investment have seen a massive response from investors, with trading volume of nearly $ 400 in just two days of launch.
Following the launch of the Purpose Bitcoin ETF, Canada also got its second Bitcoin ETF from Evolve in the same week. However, Purpose managed to make the most of the first mover advantage.
The rush to launch the Bitcoin ETF in the US market is resuming once again. NYDIG was just one of the last to apply for the Bitcoin ETF from the US SEC, whose shares will be traded on the New York Stock Exchange (NYSE). In the past, the SEC has turned down over a dozen bids for the Bitcoin ETF due to strong concerns about price manipulation and liquidity. However, the grip appears to have been loosened. How will it end? We will only be able to find out by continuing to read our latest news!