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   476

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.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   74

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.