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.
The ETF makes it too easy to get into Bitcoin which is a bad thing. Users need to learn the underlying technology in order to understand what they are getting into.
This,
You don't want to give people easy acces to something they don't understand, and probably is going to cost them a lot of money.
thanks for your infomation... @jrcornel
I wonder how you guys get on top of these info so early....nice one tho, thanks
Thank you for the information, the more investment bitcoin gets, the more stable the ship is, but can you explain what an ETF is?
Will be interesting to see how all this turns out, when the dust settles
Next year will be the cryptocurrency revolution. All coins began to be more mature and the market to be stronger. Now, if future contracts will be allowed as well, I think that the bet is on them. Let's just hope that there won't be any crisis, because the cryptocurrency needs stability and technological progress in order to prove itself. Invest, but also be moderate about it!
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Sure! No need to ask
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I think ETFs will be a great way to introduce even more money into the crypto ecosystem. With that being said I think the best way to invest is to create your own cryptfolio through strong research and patience. That will be the approach I take.
What a nice post on bitcoin i will be glad if you can follow and upvote my vote also @horlly,,just based on love and inspirational articles and coats
Thank you for the article - Good info for me
Very informative. Thanks for sharing this. And I am looking forward to the exciting times ahead!
This will help ensure that Bitcoin/Cryptocurrency grows at an exponential rate just as it has been doing.
Question: I know it is not approved by the SEC but isn't bitshares already doing this by offering and trading open-BTC?
It's actually quite different simply because of the markets that are being made accessible here. For example, I'm an asset manager that is limited by my Regulatory authority to trade only a certain range of liquid, publicly traded assets that are listed on a major exchange. I would, hypothetically, be able to trade this Bitcoin ETF because it's a major exchange traded product. So with this, you might see a huge range of Regulated professional investors adopting trading Bitcoin through this because they'll have the legal work-around.
Thanks! I understand that Wall Street needs approval to put it on their centralized exchanges so brokers and bankers can collect large fees. Still a derivative of BTC is already available on a decentralized exchange with minimal trading fees and all you need is an account name to open an account - people should be flocking to bitshares. The centralized exchanges are targets for hackers because everything is kept in one basket so it is a worthwhile effort. The decentralized exchange spreads the value over a large network so that a big score is not available to hackers.
Oh for sure, I agree with that! I think that there's big slice of assets in the major capital markets that's kept out of cryptos because of regulations on major exchanges and major asset managers that an ETF addresses- for instance, a 55 year old nurse that parks her money at Ameriprise or Schwab with a Registered Investment Advisor. She would not have had their money going into Bitcoin without an ETF, but might now because that asset manager is now able to with a public traded ETF. But for more independent, self-directed folks I think we all know an ETF is not going to be the winning strategy on balance.
It does have a purpose for the uninformed.
I think ETF is Great Way of introduce
and all this can be done one simple conclusion, the crypto currency will fly up, so do not waste time and buy + buy popcorn and enjoy
The Bitcoin Investment Trust has won a spectacular set of gains over the past year!
Everybody will be jumping on the bandwagon. Governments everywhere will be rubbing their hands anticipating the extra revenue
every body wants to make money off bitcoin.... the crypto exchanges are not always easy to figure out at first, so with futures it will be much easier to get in ... perhaps these are people which wouldd have never buy with the crypto exchanges,,,, so, great visibility here for bitcoin and the crypto world
Great post, thanks for the info.
Anyones views on Litecoin
Big returns on GBTC Bitcoin investment fund. Watch this share
I doubt the futures market will have a positive impact on btc I expect to be the other way round. Let's just see what happens
Beautiful publication Thank you for the information
Guess soon it will become reality to all that btc is here to stay in a decentralized manner. Thanks for sharing
There are at least 15 applications for bitcoin ETFS.
https://www.investopedia.com/news/bitcoin-etfs-are-next-line-after-futures/
👍👍👍
ETFs are a great way to invest and will open up the mass market to crypto currencies. Bitcoin is on a great run at the moment, but I will probably readjust soon in which case investors will lose interest in the short term.
For the long term, I prefer to invest in shovels rather than gold. What I'm waiting for are ETFs that invest in blockchain technology/development companies, because this where I believe the real long term value lies.
Well time will tell what will happen. It is for sure that we are at the early stages of development yet. I still expect new better crypto coin to appear. Nice insights thou. Strap in :P for the roller coaster ride. ;)
In the near future, all the portfolio managers would be encouraged rather forced to add cryptos in their portfolio depending on their risk appetite. It would be interesting to see the composition of the ETF crypto portfolio, given the diversified cryptos and ICOs available. They will also have to add Bitcoin and Ether to the portfolio to start with as they are the base currencies (early comers advantage).
Everything is a wait and see regarding crypto.