When We’ll See Bitcoin ETF?
After launching bitcoin futures by Chicago Board of Options Exchange, it comes out a question- what’s next for the virtual coin? Answer is the launch of exchange traded fund (ETF) for tracking bitcoin futures.
Actually, if such an ETF does get approval, it will follow Monday’s launch of a second regulated bitcoin exchange by CME Group. And it would trail well-behind a Sweden-based exchange traded note (ETN), XBT Provider, that trades on the Nordic Nasdaq. XBT Provider tracks the movement of both bitcoin and ethereum digital currencies. The fund avoids market risk by always holding bitcoin equivalent to the value of the issued ETNs.
In the past few days there are 3 firms, which have filed with the U.S. Securities and Exchange Commission (SEC) to create bitcoin ETFs: the VanEck Vectors Bitcoin Strategy ETF, the REX Bitcoin Strategy ETF, and the REX Short Bitcoin Strategy ETF. Earlier this year all three had filed with the SEC earlier this year but withdrew their applications before the agency could reject them.
The SEC and other regulators objected to the earlier applications on the grounds that there was no futures-based index by which to measure the value of the underlying asset. The arrival of the CBOE and the coming launch of the CME exchange may remove that hurdle, but others remain.
The bitcoin futures launching is not a proof of starting ETF issuance. But the event is coming, may be at the first half of next year.