- Bitwise has introduced a new app for launching a futures ETF.
- Its proposed fund would participate in bitcoin futures contracts exclusively through a wholly owned subsidiary of the Cayman Islands.
- ProShares introduced the first Bitcoin futures ETF in the US last October.
Bitwise, a leading cryptocurrency asset management firm, has re-filed papers to launch a Bitcoin Futures Exchange Traded Fund (ETF). Via a wholly owned subsidiary of the Cayman Islands, the proposed fund will only invest in bitcoin futures, according to a Securities and Exchange Commission (SEC) filing on November 23.
As a result of the high price and complexity of the proposed product, Bitwise withdrew its application again in November 2021. The initial proposal was submitted back in September last year.
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Bitwise Reintroduces Bitcoin Futures ETF, Starting From Scratch And With Its Own Trust ETF Fees Heck | The February 6 “yield” in this case refers to the futures “roll yield” and not the distribution yield. https://t.co/ZXCKqikheC https://t.co/EEVakTUtQO pic.twitter.com/m38dnGJuSZ
— ETF rumors by Henry Jim (@ETFhearsay) November 23, 2022
Many in the cryptocurrency industry consider October 19, when ProShares introduced the first US-based bitcoin futures traded fund, to be a turning point.
On the first day of trading, the trading volume exceeded $500 million, making it the second most traded fund in history.
Soon after, Valkyrie introduced a similar product, making it the second crypto exchange-traded fund to gain SEC approval.
on the flip side
- Despite the fact that ProShares Bitcoin Strategy ETF (BITO) was an instant hit when it first came out, 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% of its value in its first year of trading, BITO is now considered one of the worst ETFs ever.
- The Securities and Exchange Commission (SEC) approved bitcoin futures trading funds (ETFs), but did not approve an existing product immediately due to ongoing concerns about market manipulation. The Securities Commission has rejected Bitwise’s request to launch an instant Bitcoin ETF.
Why should you bother
ETFs that track the price of bitcoin futures allow investors exposure to bitcoin’s value fluctuations without requiring them to actually buy bitcoin. The introduction of bitcoin ETFs and bitcoin futures ETFs could help accelerate both growth in bitcoin and gains across the cryptocurrency industry, given that the positions of many other digital currencies are closely correlated with the positions of the original cryptocurrency.
Read more market news:
Coinbase (NASDAQ:) supports Grayscale’s lawsuit against the SEC’s rejection of a Bitcoin Spot ETF
Crypto Winter Has Institutional Investors Accumulating Sats: Survey