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 Price Jumps by 11% to Reach One-Month High Above $6.9k
Bitcoin, the world's largest cryptocurrency by market capitalization, jumped by 11 percent on Monday, pushing prices above $6,900 for the first time in a month.
CoinDesk's Bitcoin Price Index shows
Price of 'Stable' Cryptocurrency Tether Tanks to 18-Month Low
UPDATE (10/15, 7:50 PM EST): Representatives from Tether have released a statement, attributed to chief compliance officer Leonardo Real. The statement comes hours after the USDT price fell below its
PBoC's Digital Currency Chief Departs to Lead Securities Clearing House
The former architect of China's central bank digital currency (CBDC) initiative has left the position to head the country's central securities clearing house.
Yao Qian, who founded the Digital Curr
Bitcoin Price Spikes But Bull Reversal Is Still $1K Away
Bitcoin (BTC) spiked 11 percent Monday, likely due to a sell-off in tether (USDT), but a bullish reversal is still not confirmed, technical charts indicate.
The leading cryptocurrency jumped to a 2
US City Mulls Roll Out of Tougher Rules for Crypto Miners
Plattsburgh, New York, is considering bringing in stricter requirements on commercial cryptocurrency mining farms operating in the city.
Patrick McFarlin, a councilor of Plattsburgh's Common Counci
Crypto Exchange OKEx Lists 4 New Stablecoins
Malta-based cryptocurrency exchange OKEx has announced that it is adding four U.S. dollar-pegged cryptocurrencies to its platform for trading.
Rolling out the new additions over Monday and Tuesday,
Binance Pauses Tether Withdrawals After Denying Delist Rumor
Crypto exchange Binance, the world's largest by volume, suspended withdrawals of the tether (USDT) stablecoin Monday morning during what it called a period of heightened activity.
Sony Builds Digital Rights Management System on a Blockchain
Japanese electronics giant Sony has developed a new blockchain-based digital rights management system that may see commercial rollout.
According to a press release from the firm Monday, the system