ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Modern Alpha Channel – ETF Database
  2. SEC Has Fired Its First Shot at Cryptocurrency Lenders
Modern Alpha Channel - ETF Database
Share

SEC Has Fired Its First Shot at Cryptocurrency Lenders

Karrie GordonFeb 14, 2022
2022-02-14

The Securities and Exchange Commission announced Monday its agreement in a settlement with BlockFi over allegations that the platform had failed to register its interest-bearing accounts as securities, reports the Financial Times.

It’s the first major enforcement taken by the regulatory agency and provides clarification over the previously uncertain area regarding cryptocurrency lending products with links to interest-bearing accounts. The SEC has issued a warning as well that it would bring more cases forward if cryptocurrency lenders failed to register their products as securities with the commission.

“This is the first case of its kind with respect to crypto lending platforms,” said Gary Gensler, the SEC chair. “Today’s settlement makes clear that crypto markets must comply with time-tested securities laws.”

BlockFi will be paying a total of $100 million in penalties, with $50 million going to the SEC and the other $50 million allocated to 32 states. The platform sold BlockFi Interest Accounts (BIA) beginning in March 2019, and the SEC has said that in its failure to register accounts that had offered regular interest payments, it broke the securities law.

This is the first step this year in crypto regulation by the SEC and could be the beginnings of major regulatory attempts to bring crypto to heel within existing or new regulatory frameworks.

For its part, BlockFi hasn’t admitted wrongdoing but was quick to cooperate with the SEC, thereby avoiding even steeper financial penalties. The company will be continuing its BIA accounts but has closed any new investments into them, and it is pivoting to launch new accounts that will be registered with the SEC.

Investing in Regulated Bitcoin Futures With GCC

It’s a time of uncertainty as the threat of regulation continues to hang over the crypto economy, a major concern for investors in 2022. For those investors who are seeking crypto exposure but want to go through already-regulated spaces while diversifying for volatility in case of tightening SEC regulations in the future, the WisdomTree Enhanced Commodity Strategy Fund (GCC A) can be an excellent option.

GCC invests in a basket of commodities and bitcoin futures in seeking diversification in assets that are uncorrelated to most equities and fixed income returns. The fund is an actively managed ETF that offers broad exposure to the following commodities sectors: agriculture, energy, industrial metals, and precious metals, mainly via futures contracts. It also can invest up to 5% of its net assets into bitcoin futures contracts, a regulated space under the purview of the CFTC, but it does not invest directly in bitcoin.

Current weighting of GCC is 28.70% to energy, 22.11% to industrial metals, 19.01% to grains (agriculture), 15.10% to precious metals, 7.53% to softs (agriculture) such as cotton and sugar, 4.35% to livestock (agriculture), and 3.20% to bitcoin futures.

GCC carries an expense ratio of 0.55%.

For more news, information, and strategy, visit the Modern Alpha Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X