Bitcoin has situated itself on the cusp of the mainstream in recent times; with the recent CBOE futures launch going a long way in rubber-stamping the cryptocurrency’s investment credentials. Helping to take matters one step further, the potential for a Bitcoin ETF moved closer, as the NYSE recently filed with the U.S. Securities and Exchange Commission (SEC) to list two Bitcoin futures tracking funds.
The two funds that the NYSE plans to list are the ProShares Short Bitcoin ETF and the ProShares Bitcoin ETF. Both of these ETFs would allow investors to effectively wager on the volatility of cryptocurrency futures contracts and predict how they will do within the market. ProShares Bitcoin ETF probably ranks as the more prominent of the two funds, as it has approximately $30 billion in under management assets, with its scope sure to grab trader attention should the ETF NYSE listing become a reality. ProShares actually filed its own papers with the SEC for both Bitcoin ETFs during September 2017, which shows that things really are moving forward.
Brows Brothers Harriman would operate as the custodian for the funds, and would subsequently cover asset investment, along with preparing regulatory filings. The funds would function through the tracking of either CME or CBOE Bitcoin futures, investing assets into benchmark futures contracts with the choice of diversifying outside of the benchmark contracts as well. Win Thin and Marc Chandler will be the two key forex strategists at the helm, with both being widely respected among forex brokers.
The introduction of a viable ETF product could work to lend further legitimacy to the Bitcoin cause.
Bitcoin has been riding a massive wave of momentum as of late, which has only worked to boost the cryptocurrency’s profile. Futures trading with regards to Bitcoin got off to a fast start, drawing professional traders and investors to the commodity seemingly overnight. The introduction of a viable ETF product could work to lend further legitimacy to the Bitcoin cause. Speaking on the impact that an ETF could have, Thin said, “It represents further mainstreaming. Hopefully, that is what comes out of this: some more regulatory oversight.”
In spite of Bitcoin’s infamous volatility, it rocketed in value by almost 2,000% during 2017. This stunning price rise has forced the world to sit up and take notice of Bitcoin, with the cryptocurrency certainly having a big 2018 ahead. In a similar fashion to other ETFs, those who opt to invest in the ProShares Bitcoin ETF – or any other potential Bitcoin ETF for that matter – would reap the benefits from any futures contracts price shifts.
Bitcoin backers have waited on ETF news for some time, as it’s seen as an overdue call and a long-awaited stamp of legitimacy. The much-anticipated Bitcoin ETF is now on the brink of becoming a reality, with it potentially having the power to lift the cryptocurrency market as a whole to even greater heights. Representing a game-changing move, NYSE supported ETFs could be what’s needed to bridge Bitcoin’s gap to the mainstream.