THELOGICALINDIAN - According to accessible annal addition aggregation has filed with the US Securities Exchange Commission to actualize two bitcoin exchangetraded funds ETF based on Bitcoin derivatives ETF close Proshares Capital Management aims to get its bitcoinfutures articles listed on the New York Stock Exchange NYSE with a proposed best accumulated alms amount of 1M per ETF
Also read: Ledger Holdings Generates $11.4 Million to Open U.S. Bitcoin Options Exchange
U.S. Firm Proshares Files for Two Bitcoin ETFs
Proshares is an ETF administration close that launched in 2006 and offers over 140 another funds that awning a ample spectrum of investments. The aggregation has articles listed on the NYSE, Chicago Board of Options Exchange (CBOE), Nasdaq, and added boilerplate trading platforms. Now the Maryland-based business is creating its “Proshares Trust II” a bitcoin ETF that derives its Net Asset Value (NAV) from derivatives rather than captivation the bill in reserves.
Proshares added states in its Form S-1 filing that the Bitcoin-based funds are not adapted for all investors and advance in the shares involves cogent “risks.”
“The funds are not adapted for all investors and present abounding altered risks than added types of funds, including risks apropos to advance in bitcoin futures contracts, acknowledgment to bitcoin, and, in the case of the Inverse Fund, risks associated with the use of leverage,” explains Proshares S-1. “The achievement of the bitcoin futures affairs in which anniversary armamentarium invests, and accordingly the achievement of the funds, can be accepted to be actual altered from the amount of bitcoin.
Other Mainstream Bitcoin Investment Vehicles and Attempts
The Proshares ETF filing follows added companies aggravating to actualize these bitcoin-based boilerplate advance vehicles. Just recently, the U.S. Commodity Futures Trading Commission approved the close Ledger X’s Swap Execution Facility for bitcoin options. Additionally, the acclaimed CBOE Holdings Inc. affairs to add bitcoin futures to their artefact list. However, banking administration firm, CME Group, said it would stop its plans to account bitcoin futures. The contempo filing additionally follows Grayscale Investments and Van Eck Associates withdrawing proposals for two U.S. based funds.
Bitcoin Technology and Regulatory Guidelines Continue to Evolve
Proshares says it understands that bitcoin is a beginning technology and explains how altered the bitcoin abridgement is throughout the absolute S-1 filing. For instance, the close says “bitcoin is a new abstruse addition with a actual bound operating history, and the amount of bitcoin on the bitcoin barter bazaar is awful volatile, which could accept a abrogating appulse on the achievement of Bitcoin Futures Contracts and the achievement of the Funds.”
In accession to emphasizing that bitcoin is still a actual new technology, Proshares additionally addendum that authoritative guidelines appear the decentralized asset are still in the gray breadth too.
“The all-around authoritative mural for bitcoin and added agenda assets has been inconsistent and continues to evolve,” Proshares concludes. The U.S. authoritative mural may accord Proshares some agitation with its filing submitted this accomplished Wednesday due to the contempo angle withdrawals of added U.S. ETF attempts. According to Van Eck Associates, the SEC asked the close in a academic letter to abjure its trust alteration until bitcoin derivatives instruments exist.
What do you anticipate about Protoshares filing for two new bitcoin-based ETFs? Let us apperceive in the comments below.
Images via Shutterstock, Proshares, and the SEC S-1 filing.
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