Two exchange-traded fund (ETF) providers have filed with the U.S. Securities and Exchange Commission (SEC) to create Bitcoin ETF products that trade in cryptocurrency derivatives.
According to the SEC public filing system, the commission has received new applications for both REX Bitcoin Strategy ETF and REX Short Bitcoin Strategy ETF, as well as VanEck Vectors Bitcoin Strategy ETF.
The Connecticut-based REX filed its application on December 8 — two days before the first bitcoin futures contracts launched on CBOE — while the New York-based VanEck filed on December 11.
Neither firm intends to hold bitcoins directly; rather, the actively-managed funds will trade futures contracts and other derivatives products to enable investors to profit from the price movements of the flagship cryptocurrency.
A myriad of fund providers have filed to create Bitcoin ETFs, but thus far, the SEC has either denied or refused to review the applications. In the former case, the SEC denied applications that sought to trade bitcoin directly, citing the unregulated nature of bitcoin exchanges. In the latter case, the SEC stated that the commission could not review an application for a fund that would invest in non-existent products, namely, bitcoin derivatives.
However, now that CBOE has officially listed bitcoin futures and LedgerX has launched other derivatives products, many analysts expect that the SEC will begin approving ETFs that trade these products. Consequently, the futures launch is expected to trigger a flurry of new Bitcoin ETF filings.
The creation of the first Bitcoin ETF would be a historic moment for mainstream cryptocurrency adoption, as it would make bitcoin-linked investment products more easily accessible to retail investors who desire to invest in bitcoin through their brokerage and retirement accounts. It would also likely add more fuel to the bitcoin price’s record rampage as it heads into 2018.
However, it is not clear to what extent — if any — the market has already priced an ETF into the general upswing surrounding the futures launch. Consequently, it is possible that an SEC rejection could move the markets into bearish territory.
Bitcoin Had a Strange Week. Does It Matter?
Bitcoin was supposed to kill Western Union — that hasn't happened – Yahoo Finance
all 14 news articlesÂ Â»
Venezuela Blasts 'False' White Paper for Oil-Backed Cryptocurrency
Venezuela's government is pushing back against what it calls "false information" in connection with a purported white paper tied to its planned oil-backed cryptocurrency.
While the South American n
Prominent crypto critic calls bitcoin a ‘bubble’ and says go to Vegas if you want to gamble
Retailer Overstock mixed up bitcoin and bitcoin cash, letting customers buy items at a steep discount
A serious payment glitch on retail website Overstock.com, which sells everything from furniture to diamond rings, allowed customers to pay with either bitcoin or bitcoin cash interchangeably. It's a
OKCoin Eyes Cryptocurrency Exchange Launch in South Korea
Cryptocurrency exchange OKCoin is reportedly moving to launch in South Korea – possibly as soon as next month.
According to The Korea Times, the Beijing-based firm is eyeing a partnership with NHN
Bulgaria Joins 'International Operation' Against OneCoin
The Bulgarian Special Prosecutor's Office is involved in a wide-ranging, international investigation into companies and persons behind the digital currency investment scheme OneCoin, which has been wi
Report: India's Government Sends Tax Notices to Cryptocurrency Traders
India's government has reportedly sent tax notices to cryptocurrency traders and investors following a nationwide survey.
According to Reuters, a survey found that Indian citizens conducted more th