Multiple securities filings have cropped up on the Securities and Exchange Database regarding applications to trade Bitcoin based Exchange Traded Funds (ETFs). The applications to trade ETFs follows the launch of Bitcoin based futures contracts that kicked off earlier this month.
An example would be the REX Bitcoin Strategy or the Short Bitcoin Strategy ETF.
The filing explains that the funds will be actively managed and are not expected to invest directly in Bitcoin. The REX Short Bitcoin Strategy ETF seeks to provide “short” exposure, which may appeal to investors who believe the price of BTC or BTC based assets has gone too high. The REX Bitcoin strategy may appeal to the more bullish investor as it may provide investors with long exposure to the price movements of Bitcoin.
The First Trust Bitcoin Strategy ETF. This Fund seeks to achieve its investment objective by investing in a portfolio of exchange-traded financial instruments that provide exposure to movements in the value of Bitcoin. While the Fund intends to invest primarily in exchange-traded Bitcoin futures contracts, it may also invest in options, swaps, pooled investment vehicles and exchange-traded products that provide exposure to bitcoin.
VanEck Vectors Bitcoin Strategy ETF expects to trade on NASDAQ. The Fund seeks to achieve its investment objective by investing in U.S. exchange-traded bitcoin-linked derivative instruments and pooled investment vehicles and exchange-traded products that provide exposure to bitcoin. The Fund is an actively managed ETF.
ProShares Trust has filed for four different ETFs.
- ProShares Bitcoin Futures Strategy ETF
- ProShares Short Bitcoin Futures Strategy ETF
- ProShares Bitcoin Futures/Equity Strategy ETF
- ProShares Bitcoin/Blockchain Strategy ETF
What does this all mean?
It will be far easier for retail investors to gain short, or long, exposure to Bitcoin based assets.
Hey, as long as you can track volatility of something, you can turn it into a legalized investment. Wall Street etc. is just responding to consumer demand.
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