Bitcoin Futures ETF

They will be permitted to proceed and remit 75 days after filing of their documents unless the SEC takes action within that time frame. Cboe Global Markets (CBOE) the exchange responsible for the creation of bitcoin futures hoped the SEC would also allow digital currency ETFs. Cboe also acquired Bats Global Markets, the exchange that will offer the Winklevoss ETF.

One River Asset Management launched its Bitcoin ETF offering with its demand for a zero-issue Bitcoin exchange-traded fund in May 2021 and joined the ranks of ambitious bitcoin ETFs in the US in March 2021 by submitting an S-1 to the SEC that offered to list WisdomTree Bitcoin Trust shares under the ticker BTCW on Cboe bZx. 

The SEC was hesitant to approve Bitcoin ETFs – rumored to have 13 filings on July pending regulatory approval – and in fact it did not officially approve BITO, but it didn’t stop the funds either – even if ETFs contain physical cryptocurrencies remain out of sight (for now).

However, to date, the US Securities and Exchange Commission (SEC) has rejected any request for a spot bitcoin ETF that offers direct access to bitcoins rather than futures contracts. SEC Chairman Gary Gensler said on Tuesday that bitcoin futures are controlled by the Commodity Futures Trading Commission and ETFs are regulated by the SEC, offering a certain level of investor protection. In his August speech, SEC President Gary Gensler said he would prioritize investment vehicles that include futures. 

Investing in ETFs based on futures is not the same as investing directly in Bitcoin, but with uncertainty as to whether the SEC might approve a spot bitcoin ETF, and when, investors will have to settle for a futures product between cryptocurrencies and traditional investments. Since 2017, at least 10 asset managers have applied for approval to launch Bitcoin Spot ETFs, which provide investors with the means to buy Bitcoin itself, rather than its related derivatives. 

Wall Street may see four futures-backed bitcoin ETFs that could begin trading on US exchanges this month as filing deadlines from Invesco Ltd., VanEck and Valkyrie approach. Wealth manager ProShares announced plans to launch an exchange-traded fund for bitcoin futures as early as Monday to end the eight-year wait for shares that track cryptocurrency in the US stock market.

The emergence in recent months of the first Bitcoin-focused exchange-traded fund in the United States went down in history as the launch of the strongest ETF ever, quickly adding more than $ 1 billion in assets to the market. ProShares, a provider of specialized exchange-traded products, began trading with the Bitcoin Strategy Fund on October 19, 2021 and became the first Bitcoin ETF traded in the United States.  

We are looking at new ETFs for Bitcoin Futures, but most of these products are stock trading that is somehow related to cryptocurrencies or other kinds of exposure that have their own specifics. ETFs are designed to closely track the price of bitcoin, so the most popular futures contract is the one that expires nearest to the current date known as the previous month’s contract or spot.  

You can short-sell a bitcoin ETF stock if you think the underlying asset will fall in price, which you will not find by investing in bitcoin itself. Since ETF is an investment vehicle, investors can short-sell ETF shares if they believe the price of bitcoin will fall in the future. Bitcoin ETF tracking is the best opportunity for this type of connection. 

For US investors this is an opportunity to regain lost ground in Canada and Europe, where dozens of exchange-traded products follow – both spot prices and futures – for bitcoins and other cryptocurrencies already have tens of billions of dollars in assets. He can also invest in Canadian ETFs that invest directly in bitcoin and he can also invest in money market instruments such as US Treasuries if he so desires. 

The ETF will trade on the NYSE Arca on the bitcoin benchmark price on the Chicago Mercantile Exchange and will give investors “an effective means of executing a variety of investment strategies,” the company wrote in its proposal. On Thursday, a retweet from the SEC’s office of education that referenced the June bulletin said that “investors need to understand that Bitcoin, including gaining access through the Bitcoin Futures market, is a highly speculative investment.