A Bitcoin ETF may be here sooner than we think
According to a filing with the SEC, Direxion Investments registered a Bitcoin ETF with the SEC on Friday afternoon.
A screenshot of the filing can be seen here:
The full release can be seen here:
https://www.sec.gov/Archives/edgar/data/1424958/000119312517370642/d501370d485apos.htm
On top of that, VanEck and Rex ETFs, which withdrew their earlier applications after the SEC's ruling on the Winklevoss Bitcoin Trust, also refiled with the SEC to launch bitcoin futures-based ETFs later this month.
That is now at least 3 firms that have filed for bitcoin based ETFs.
In each instance they appear to be based on the futures products offered by the CBOE and soon the CME.
The CME's futures products are set to launch at 6 pm EST today. Which is about 2 hours from now.
More about that can be read here:
https://steemit.com/bitcoin/@jrcornel/first-it-was-the-cboe-next-up-is-the-cme-at-6-pm-est-tomorrow
Why the rush to file now?
It's all about the futures!
According to Todd Rosenbluth, the director of ETF and mutual fund research at CFRA, it really is all about the futures...
"The fact that there are now futures products might improve the likelihood that they'll get approved (by the SEC)."
"Many firms are now trying to get one out (an ETF), because there's a big first-mover advantage."
There you have it, there is a big advantage to be the first one.
On top of all that, don't forget that the SECs initial rejection of the Winklevoss ETF is currently being appealed by the Winklevoss twins. The thinking there is that since there are now futures products, which the ETF was to be based on, the ETF will be approved by the SEC now.
Not yet a sure thing.
There is still no guarantee for any of these firms though, as the underlying markets which bitcoin trades in are still not regulated.
Which seemed to also be a point of concern for the SEC.
Further more, creating an ETF based around the futures markets is somewhat interesting because it is basically like creating a derivative product off of a derivative product. Neither of which actually trade the underlying asset.
Just something to think about.
Either way, a lot more investors are likely entering the space, exciting times are ahead.
Stay informed my friends.
Sources:
https://www.ft.com/content/28bcfc66-e1d8-11e7-a8a4-0a1e63a52f9c
Image Sources:
https://themerkle.com/bitcoin-etf-approved-sec-no-decision/
https://www.sec.gov/Archives/edgar/data/1424958/000119312517370642/d501370d485apos.htm
Follow me: @jrcornel
The Winklevii should have beat the sh*t out of Mark Zuckerberg.
Bitcoin has a massive absorption. I would say next year will be more hot for crypto.
More hot than this?
I think the money going in there is diverted from going directly into Bitcoin and driving the price higher. Have to lookup if they are directly investing in BTC or just mimick the price.
(Come to Steemit, Wolfgang Vogt, and I will upvote you ! Thanks for the image!)
Yes i agree 2018 is going to be red hot for Bitcoin.
Next year might be full of uncertainties
i believe bro
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there is already an existing etf gbtc, the price of gbtcmay drop if there are some competitors
I think one hope with this ETF is that traders on the more public market (NYSE, etc) will be able to trade closer to the actual Bitcoin price in the short term. There was a time this year where GBTC was at a huge Premium (I believe upwards of 80%!) to the actual coin, which produces unpredictable results for short term traders. The ETF structure is often a very efficient way to lower discount/premiums, although using derivative products (futures) might also be unpredictable.
That would be pretty sweet. Obviously I love hodling the actual crypto, but if I could invest part of my 401K in crypto...even better. Thanks for the share.
Hi jrcornel,
Very interesting read, Thanks you for sharing it!
Wow awesome news. This will definitely propel Bitcoin further into mainstream recognition.
Cryptocurrency will become mainstream over the next few years.
Yes this is just the begining ...we all have to be more and more careful trading, be wise
Wow this is huge! Direxion has a lot of 3x ETFS. Meaning 3x the gains/losses on your investment. High risk/high reward.
I can see so many people trading this ETF!!!
Here's a list of some of their ETFs
thanks for the info
Imagine a 3x Bitcoin ETF- there would be some serious increases in retail margin calls!
LMAO
I just wish they would come out with a bitcoin settled product... cash settled is pretty ridiculous I think. It's basically a derivative of a derivative.