Intercontinental Exchange (ICE) filed an application to the US Securities and Exchange Commission for changing the rules, allowing the launch of two exchange-traded funds (ETF), focused on bitcoin futures. This is reported by CNBC.
As it follows from the application, ICE plans to include to the listing funds ProShares Bitcoin ETF and ProShares Short Bitcoin ETF, which will track the price of bitcoin through futures contracts.
Applications for the launch of ProShares Bitcoin ETF and ProShares Short ETF were filed for the first time in September, but bitcoin futures did not exist yet, and after a while applications were withdrawn. Now, when bitcoin futures appeared on two American exchanges, ProShares expects to receive SEC approval.
By being long Bitcoin Futures Contracts, the Fund seeks to benefit from daily increases in the price of the Bitcoin Futures Contracts. The Fund will not be benchmarked to the current price of bitcoin and will not invest directly in bitcoin. When the price of Bitcoin Futures Contracts held by the Fund declines, the Fund will lose value.
Since the appearance of futures on the Chicago stock exchanges CBOE and CME, the Securities Commission has refrained from commenting officially on bitcoin-ETF. Analysts and market participants, however, are hoping that the SEC will change its attitude to this instrument, given that the Commodity Futures Trading Commission (CFTC) has given permission to launch futures.