Crypto Asset Manager Refiles Bitcoin Futures ETF by DailyCoin

• Bitwise has submitted a new application to launch a futures ETF.
• The proposed fund will engage in Bitcoin futures contracts exclusively through a wholly owned Cayman Islands subsidiary.
• ProShares introduced the first Bitcoin futures ETF in the US last October.

Bitwise, a leading cryptocurrency asset manager, has resubmitted paperwork to start trading a Bitcoin futures exchange-traded fund (ETF). Using a wholly owned subsidiary incorporated in the Cayman Islands, the proposed fund will make investments exclusively in Bitcoin futures contracts, according to a filing with the Securities and Exchange Commission (SEC) on November 23.

As a result of the high price tag and complexity of the proposed product, Bitwise withdrew the application in November 2021. The first submission of proposals occurred last September.

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Bitwise Refiles A Bitcoin Futures ETF, Starts From Scratch With Their Own ETF TrustBitwise Bitcoin Strategy Optimum Yield ETF$BITC | fees tba | eff February 6 “Yield” in this case refers to futures “roll yield” and not distribution dividend. pic.twitter.com/m38dnGJuSZ

— ETF Hearsay by Henry Jim (@ETFhearsay) November 23, 2022

ETF Applications

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

On its first day of trading, it passed $500 million in volume, making it the second-highest traded fund in history.

Shortly after, Valkyrie introduced a similar product, making it the second crypto exchange-traded fund to receive approval from the Securities and Exchange Commission.

On the other side

• Although the ProShares Bitcoin Strategy ETF (BITO) was an instant hit when it debuted, interest in the product has since waned due to the sharp decline in the value of Bitcoin and other cryptocurrencies.
• After losing over 70% of its value in its first year of trading, BITO is now considered one of the worst performing ETFs ever.
• The SEC has approved Bitcoin futures exchange-traded funds (ETFs), but it has not approved a spot-based product due to persistent fears of market manipulation. The Securities and Exchange Commission has rejected Bitwise’s request 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 requiring them to actually buy Bitcoin. The introduction of bitcoin ETFs and bitcoin futures ETFs could help accelerate the growth of both bitcoin and gains across the cryptocurrency industry, given that the positions of many other digital currencies are closely correlated with the native cryptocurrency.

Read more market news:

Coinbase (NASDAQ: ) supports Grayscale’s lawsuit against the SEC’s denial of a Bitcoin Spot ETF

Crypto Winter Has Institutional Investors Stacking Sats: Survey

See the original on DailyCoin