Pi Network ETF Hopes Dashed: Liquidity and Regulation Still Missing
Analysts predict there won’t be a Pi Network ETF on the horizon. They emphasize that prior to filing, true price discovery, liquidity, regulatory maturity, and regulated custody are required. Industry experts claim that no formal statements or filings pertaining to such a product have been made.
Pi Network’s Trade Volume Falls Short for ETF Consideration
ActuFinance analysts have listed a number of requirements that Pi Network must fulfill in order for an ETF to be institutionally considered. According to the research, the cryptocurrency would need a publicly recognized market price. At the moment, Pi Network has a visible price on several platforms. However, researchers noted that the network has recently fluctuated. According to the report, strong liquidity is another crucial prerequisite. For ETF issuers to carry out significant transactions, there must be enough trading volume. Market statistics show that Pi Network’s current trade volume is still far smaller than that of major cryptocurrencies.
Regulatory Hurdles Keep Pi Network from ETF Status
According to the researchers, regulatory maturity is an essential element. Assets must be trackable, provable, and impervious to manipulation, according to regulators. According to the report, Pi Network is still making progress toward increased openness and compliance, but more effort is required to show institutional-grade maturity. According to the research, ETF functionality would require a regulated custodian that could safely store the tokens. Pi Network tokens are not currently held by any conventional financial institution in a regulated setting. ActuFinance states that full network accessibility and custodian permission would be essential.
According to the researchers, an ETF structure might be developed if Pi Network attains full listing status, openness, and stability. A licensed custodian would oversee the real Pi tokens in such a system, and frequent reporting would ensure transparency. Investors might obtain exposure through regular brokerage accounts, as the ETF price would follow Pi Network’s market value.
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