SEC Says ETF Names can Misleading Investors
The United States Securities and Exchange Commission (SEC) claims that they need only two Funds for the elimination of the word (Blockchain) as per the reports by the Bloomberg on 12th of April.
The two ETF(exchange traded funds) reportedly are Amplify and Reality we’re the first to report the early Blockchain filing.
There are reports which suggest that these two funds changed their names at the last minute in 2018 as per the Bloomberg interlocutors. Further eliminating the word Blockchain the tickers still refer the same technology.
As for the information the Amplify funds are traded as BLOK still the products are described as “transformational Data sharing ETF”. While The Reality shares are traded as BLCN and product are described as “Nasdaq NexGen economy ETF.”
Not only these, but some of the other Blockchain related funds have also eventually changed there name as per the request of SEC.
As per the Investment Company Act of 1940, the issuers of the respective funds were requested not to use material deceptive or any misleading names.
As per another report by Bloomberg, SEC is on high alert due to the alarming growth of the ETFs launched by their funds. Which were offering investment in wide range of projects and services. By this the number of assets in the funds have increased by three times between 2014 and 2018.
Most of the new ETFs are now targeting on a particular theme that’s, the media and states. SEC has already warned the U.S companies who change their name to include the word ”Blockchain” Would certainly have to face increased scrutiny from the side of the regulators.
