The emergence of Bitcoin futures on the Chicago Board Options Exchange (CBOE) has led to speculation that an ETF may be in the works. However, there are many skeptics who believe this type of fund is not yet ready for mainstream investors and will take too long to make it through regulatory hoops.
As the price of bitcoin surged, funds are now more bullish on an ETF that would allow for easier trade-ins. The most recent news comes just a day after CBOE dropped its plans to file with the SEC.The “blockfi bitcoin strategy etf” is a company that was recently founded in the United States. The company has made it clear that they are bullish on Bitcoin and will be making an application for an ETF in the near future.
Despite a handful of similar products appearing in the United States, Bitwise Asset Management has withdrew its application for a Bitcoin (BTC) futures-based exchange-traded fund (ETF).
Bitwise chief investment officer Matt Hougan declared on Nov. 10 that the business is still positive on a spot Bitcoin ETF, which is meant to follow Bitcoin directly, after withdrawing its futures-linked ETF.
Bitwise’s spot filing is intact, according to Hougan, and the company will continue its attempts to market such a product in the United States:
“A spot Bitcoin ETF is what many investors want in the end.” That is something we believe is doable. As a result, Bitwise will continue to work toward that aim, and we will seek for new methods to assist investors in taking advantage of the amazing potential in cryptocurrency.”
The CIO underlined that the initial Bitcoin ETF application was a spot-based ETF submitted by Cameron and Tyler Winklevoss, creators of the Gemini crypto exchange. The Securities and Exchange Commission (SEC) of the United States refused the application in 2017. “Many people, including the staff here, have worked on this for years,” he added.
Hougan went on to argue that “any ETF is a major step,” alluding to the SEC’s approval of various Bitcoin futures ETFs, which began trading in October. Bitwise, on the other hand, chose to withdraw its own application for a variety of reasons.
According to Bitwise study, Bitcoin futures ETF contango — a scenario in which the futures price is higher than the spot price — would cost investors between 5% and 10% each year.
BTC futures ETFs have apparently consumed “all available capacity at futures commission merchants,” according to Hougan. “This will subside with time, but for the time being, it has imposed yet another cost.” What’s the end result? “Expenses on top of costs, as well as more complexity,” he said.
BlockFi files for a Bitcoin ETF with physical backing
“None of this implies that futures-based ETFs are terrible,” the CIO said, adding that products like the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF are “considered versions.”
Bitwise filed for a spot Bitcoin ETF in mid-October, according to Cointelegraph, with plans to sell the product on the NYSE Arca electronic securities market. The application was submitted about a month after the Bitwise Bitcoin Strategy ETF was filed in September.
Bitcoin has been a bit of a roller coaster this week, but the Bitcoin ETF is still on track to be approved. After dropping their futures filing for the first time in three years, Bitwise bullish on pure Bitcoin ETF after dropping futures filing. Reference: bitcoin news.
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