21Shares Debuts Middle East’s First Bitcoin Spot ETF
- 21Shares has confirmed the debut of the first Bitcoin ETF following the spot prices of the world’s biggest cryptocurrency in the Middle East.
- The new product from the firm will be listed on Nasdaq Dubai and this marks the first venture of the ETF issuer in the Middle East.
- This product from 21Shares comes just a month after the firm raised close to $25 million in a new funding round led by hedge fund Marshall Wace.
One of the most popular and biggest providers of ETFs or exchange traded funds across the world, 21Shares has confirmed the debut of the first Bitcoin ETF following the spot prices of the world’s biggest cryptocurrency in the Middle East. Interestingly, the world’s largest issuer of exchange traded products also has palns to expand into other regions of the world as well.
21Shares continues to expand its services on a global scale and its newest venture into the Middle East will see the spot Bitcoin ETF listed on Nasdaq Dubai. This is a first of its kind product and will mark the ETF issuers entry into the Dubai market. Additionally, the firm lists 46 products across 12 exchanges in seven countries.
According to a report, this product from 21Shares comes just a month after the firm raised close to $25 million in a new funding round led by hedge fund Marshall Wace despite the market being strongly bearish and the world entering a scene of an economic recession. 21Shares is currently valued at $2 billion and as per the CEO of the firm’s parent organization 21.co, Hany Rashwan, the goal is to list the products offered by the ETF issuer in “every single geography.”
“The region has become a hub for crypto companies and exchanges…especially following India’s decision to tax earnings from crypto at 30%,”Rashwan said.
While the Middle East has proven to be one of the most lucrative and crypto-friendly environements from crypto-focused firms, it is clear that the US is not following the same tune. The US SEC has recently declined the proposal brought forth by WisdomTree, a popular investment firm, regarding issuing a Bitcoin spot ETF in the United States.
Over dozens of Bitcoin spot ETF applications have been rejected by the SEC and it seems that there is zero chance of such a product being listed on the NASDAQ exchange or any other major exchange in the US anytime soon. This is because there is one firewall put up by the regulatory authority that none of the ETF issuers have been able to break through, including 21Shares.
“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), which requires, in relevant part, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest,'”said the SEC.
The above-mentioned reason is why the SEC has declined almost every Bitcoin spot ETF proposal and in the future, they might continue to do so. Grayscale, one of the biggest names in the crypto industry, filed for the conversion of GBTC to BTC ETF and following the refusal of the same, the firm has filed a lawsuit against the SEC.