Crypto Asset Manager re-archives Bitcoin Futures ETF from DailyCoin

©Reuters. Crypto Asset Manager relaunches Bitcoin Futures ETF
  • Bitwise has submitted a new application to launch a futures ETF.
  • The proposed fund would only invest in bitcoin futures contracts through a wholly owned subsidiary in the Cayman Islands.
  • ProShares launched the first Bitcoin futures ETF in the US last October.

Bitwise, a leading cryptocurrency wealth manager, has resubmitted the paperwork to begin trading a bitcoin futures exchange-traded fund (ETF). Through a wholly owned subsidiary based in the Cayman Islands, the proposed fund would only invest in bitcoin futures contracts, according to a Securities and Exchange Commission (SEC) filing filed Nov. 23.

Due to the high price and complexity of the proposed product, Bitwise withdrew its application back in November 2021. The proposal was first submitted in September last year.

.tweet-container,.twitter-tweet.twitter-tweet-rendered,blockquote.twitter-tweet{min-height:261px}.tweet-container{position:relative}blockquote.twitter-tweet{display:flex;max-width :550px;top margin:10px;bottom margin:10px}blockquote.twitter-tweet p{font:20px -apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Helvetica,Arial,sans-serif}.tweet- container div :first-child{ position:absolute!important }.tweet-container div:last-child{ position:relative!important }

ETF Applications

Many in the cryptocurrency industry consider October 19, when ProShares launched the first Bitcoin futures exchange-traded fund in the United States, to be a turning point.

It surpassed $500 million in volume on its first day of trading, making it the second most traded fund in history.

Shortly thereafter, Valkyrie launched a similar product, becoming the second crypto exchange-traded fund to receive Securities and Exchange Commission approval.

On the flip side

  • Despite the fact that the ProShares Bitcoin Strategy ETF (BITO) was an instant hit upon its debut, interest in the product has since waned due to the sharp decline in the value of Bitcoin and other cryptocurrencies.
  • After losing more than 70% in its first year of trading, BITO is now considered one of the worst performing ETFs of all time.
  • The SEC has approved bitcoin futures exchange-traded funds (ETFs), but they have not approved a spot-based product due to ongoing fears of market manipulation. The Securities Commission has rejected Bitwise’s application to launch a spot Bitcoin ETF.

Why you should care

ETFs that track bitcoin futures prices give investors exposure to bitcoin’s fluctuating value without actually buying bitcoin. The launch of bitcoin ETFs and bitcoin futures ETFs can help accelerate bitcoin growth and gains across the cryptocurrency industry, as the positions of many other digital currencies closely correlate with those of the original cryptocurrency.

Read more market news:

Coinbase (NASDAQ:) is backing Grayscale’s lawsuit against the SEC’s rejection of a Bitcoin Spot ETF

Crypto Winter Makes Institutional Investors Stack Sats: Poll

See original on DailyCoin

Leave a Comment