Intercontinental Exchange unit to launch Bitcoin futures

NYSE Arca, a unit of Intercontinental Exchange, has filed with the SEC to be allowed to launch two funds traded on the exchange connected with Bitcoin futures
20 December 2017   1181

The first all-electronic exchange in the USA, NYSE Arca is owned by Intercontinental Exchange and currently trades more than 8,000 exchange-listed securities. On December 19 the records were published, stating that the Exchange proposes to list and trade the ProShares Bitcoin ETF and the ProShares Short Bitcoin ETF under NYSE Arca Rule.

It was stated that the value of the Bitcoin Futures Contracts will be based on the expected value of Bitcoin at a future point in time, specifically, the expiration date of such Bitcoin Futures Contracts. By being long Bitcoin Futures Contracts, the Fund seeks to benefit from daily increases in the price of the Bitcoin Futures Contracts. 

According to the Registration Statement, the investment objective of the Fund is to seek results (before fees and expenses) that, both for a single day and over time, correspond to the performance of lead month Bitcoin futures contracts listed and traded on either Cboe or CME.

Notice of Filing of Proposed Rule Change to List and Trade the Shares

Previously, we have reported that The CME Group and Cboe exchange have successfully opened Bitcoin futures trading.

BIS to Issue Research on Bitcoin Problems

Researcher from the Bank of International Settlements believes BTC should abadon PoW
22 January 2019   82

Researchers from the Bank for International Settlements published a report in which they stated that only by abandoning the Proof-of-Work mechanism of consensus, Bitcoin could get rid of its current and future problems.

According to them, in the future, when the size of the rewards for mining drops to zero, transaction processing fees alone will not be enough to justify the miners' activities. Consequently, the Bitcoin network will become so slow that it will be impossible to use it, the authors argue.

Simple calculations suggest that once block rewards are zero, it could take months before a Bitcoin payment is final, unless new technologies are deployed to speed up payment finality. 

Raphael Auer

Principal Economist, BIS

The BIS admits that second-level solutions such as the Lightning Network can ease the task, but “only fundamental remedy would be to depart from proof-of-work.” According to the report, the transition to alternative consensus mechanisms “require some form of social coordination or institutionalisation”.

The Bank for International Settlements contributes to the cooperation of 60 central banks from various countries of the world, which account for 95% of global GDP.

Earlier this month, the agency disclosed statistics on central bank initiatives in the field of state digital currencies. According to him, about 70% of central banks conduct research related to the issuance of national digital currencies, but plans for their implementation and the perception of the issue vary considerably in different countries