SEC clamps down on ETFs using "blockchain" in their tickers

14 Apr, 2019
by Richard Allen
SEC clamps down on ETFs using blockchain in their tickers

The United States Securities and Exchange Commission (SEC) has reportedly required two funds to remove the word “blockchain” from their monikers, according to a Bloomberg article.

The article cites sources close to the matter who state both Amplify and Reality Shares ETFs both referenced blockchain technology in early filings but had to adopt different names at the last minute in 2018.

While both removed the word from the filing, the funds’ tickers still refer to the technology. Amplify’s funds are traded as BLOK, describing the product as a “transformational data sharing ETF. Reality Shares have adopted the title BLCN, describing its product as “Nasdaq NexGen economy ETF.”

Bloomberg goes on to say that there were additional blockchain-related funds that were required to change their names at the SEC’s request.

As CoinTelegraph reports, the Investment Company Act of 1940 states that issuers are prohibited from using “materially deceptive or misleading” names. In 2001, the SEC implemented the Names Rule (Rule 35d) in an effort to clarify the guidelines. As such, funds are required to ensure at least 80% of assets coincide with the description of their monikers.

Bloomberg writes that this is all part of the SEC’s attempt to get a handle on the rapidly increasing number of ETF’s launched by funds offering a wide range of investments. Between 2014 and 2018, the number of assets in these funds as almost tripled.

Read more: Economist John Berlau criticizes SEC over its handling of cryptocurrencies

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Read more about: SEC ETF

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage