Bitcoin

The global digital assets industry saw a surge of positive investors’ sentiments erupting into the market as crypto linked <a href="https://news.todayq.com/investing-in-ether-futures-etfs-what-you-need-to-know/" rel="noopener noreferrer nofollow">Exchange Traded Funds</a> (ETF) gained trading approval from the US Securities and Exchange Commission (SEC). Reports suggest that these funds are now facing unexpected challenges in just a few months of coming into existence. Bitcoin ETFs issuers facing troubles 
As per reports, the US Bitcoin linked ETFs are receiving digital assets they didn’t purchase and can’t liquidate. It mentioned that Digital artworks and non-bitcoin tokens have made their way into the wallets of ETF providers such as Cathie Wood’s Ark Investment Management and Bitwise Asset Management. They got images of frogs vomiting rainbows and other whimsical imagery.
These virtual gifts are also known as dust in the market. These assets are reportedly implanted in previous crypto transactions and sold by previous owners. This presents a unique and difficult situation for ETF managers.
It is important to note that BTC ETFs have seen a movement of more than 500,000 Bitcoins since its historic launch. However, this suggests that the issue of dust is also growing in the market.
The report highlights that this method could turn out to be advantageous but regulatory hurdles are preventing the funds from using this technique. The US SEC is yet to give approval for selling bonus virtual assets due to tax regulations. However, the watchdogs have also not structured such rules to seek to handle such situations. What’s happening? 
It added that this issue is growing with an increase in the popularity of bitcoin non-fungible tokens (NFTs). This allows text and images to be embedded into Bitcoin transactions. The outcome of this scenario suggests that the ETF digital vaults have unintentionally accumulated these virtual artifacts with Bitcoin holdings.
Bitcoin has seen a remarkable surge over the past year. BTC price is up by around 48% on the year to date (YTD) basis. Meanwhile, it has dropped by 12% in the last 30 days. Bitcoin is trading at an average price of $62,386, at the press time. Its 24 hour trading volume is up by 18% to stand at $21.11 billion.
Despite measures to distance themselves from unwanted assets, including providing blockchain addresses of digital wallets and implementing policies to forfeit unexpected virtual assets, ETF issuers face challenges in maintaining their legal status and investor appeal. Complicated tax implications and regulatory uncertainties loom large, potentially deterring investors and undermining the viability of these products.

Crypto ETFs hit roadblock; Dust, NFTs cluttering digital vaults!

Todayq News

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