MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, July 16, 2013 Bitcoin ETF: A Case Study of How Not to Create an ETF A tip to ETF administrators: If you want to launch an ETF, choosing an undeveloped underlying market and getting authorized participants on board is essential. In the case of the Winklevii ETF, the Bitcoin isn't reliable enough to build an ETF upon, and authorized participants are not game to taking such a risk, Financial Times reporter Arrash Massoudi writes. That mentality, however, could extend to other ETFs in times of intense market stress, such as when Citigroup stopped accepting orders to redeem underlying assets. There's no need to worry too much, however, Massoudi's sources say: “I don’t think we’re ever going to have a situation where everyone just decides we don’t want to make money,” says one [authorized participant] who declined to be named.To read more, click here. Printed from: MFWire.com/story.asp?s=44935 Copyright 2013, InvestmentWires, Inc. All Rights Reserved |