First US Bitcoin futures ETF may debut Monday, filing says

An action that would end an eight-year wait for a security tracking the cryptocurrency on the US stock market, according to a filing.
Image: Akos Stiller/Bloomberg

Asset manager ProShares signaled plans to launch a Bitcoin futures exchange-traded fund as soon as Monday, an action that would end an eight-year wait for a security tracking the cryptocurrency on the US stock market, according to a filing.

The fund manager filed an updated prospectus late Friday with the Securities and Exchange Commission for the Bitcoin Strategy ETF (ticker BITO). The filing indicated October 18 as the approximate date for the proposed launch of the fund, which will trade on the NYSE Arca Exchange and charge a management fee of 0.95%. An official at ProShares declined to comment. A spokesperson for the SEC didn’t immediately respond to a request for comment.

Bloomberg News reported Thursday that the SEC isn’t likely to block the products from starting to trade next week, according to people familiar with the matter. Barring a last-minute reversal, the fund launch will be the culmination of a nearly decade-long campaign by the $6.7 trillion ETF industry. Cameron and Tyler Winklevoss, the twins best known for their part in the history of Facebook Inc., filed the first application for a Bitcoin ETF in 2013.

An ETF has been out of grasp for US issuers for nearly a decade, with regulators citing concerns on everything from price manipulation to validating ownership of the coins held by funds. The mood music shifted in August, when SEC head Gary Gensler signaled he’d favour funds based on CME-traded Bitcoin futures filed under a 1940s law — a stance he reiterated late last month.

That openness spurred a flood of futures-backed filings. Wall Street could see four futures-backed Bitcoin ETFs could begin trading on US exchanges this month, with deadlines for applications from Invesco Ltd., VanEck and Valkyrie also approaching.

An ETF should provide greater ease-of-use for retail investors looking to ride Bitcoin’s often hair-raising ups and downs. Like securities tracking oil and gold, it will change hands on relatively familiar US stock-market venues, rather than in cryptocurrency or futures exchanges whose workings are imposing to some users.

Bitcoin has surged in recent weeks, fueled by speculation that a US launch could be imminent. The world’s largest cryptocurrency broke above $62 000 for the first time since April on Friday, just below its all-time high of $64 869 set earlier this year. Bitcoin has more than doubled from its late July low.

© 2021 Bloomberg

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How is this for financial engineering and gearing? Buy a CFD on an ETF that represents a futures contract that is a derivative of the underlying virtual currency.

Tell me- if you buy this CFD, what do you actually own? You own a promise, backed by a promise, backed by another promise, that is backed by nothing, because the ultimate backing is virtual.

We buy this fuzzy cloud of ideas because we believe it will increase in value over time. Maybe it will, maybe it won’t. It will be one hell of a rollercoaster ride though!

Fascinating times eh , Sensei!
The Tulips dont want to succumb to the onslought of the Mafia-State-Fiat currency hegemony .Cell phones in general been with us for 20 years , smart phones 10 years. Soon your internet connection will be beamed from a satellite .Soon….your ID will be linked to your vacc certificate , your electronic bank card , SARS database, your access code for your place of employment , airport entry and even to start your vehicle and naturally your NHI number that will give your access to your mandatory state healthcare system .You will get social credits and debits and the associated penalties….robotically , centralized, electronically enforced.Society will be cashless , to save will be futile.Interest rates will be adjusted with the flick of a switch and “money” printed ad lib. All this will be managed and implemented via your little cellphone , without which you will be stranded (even now )
You are quite correct , the Mafia-State-Industrial/Techno complex wont let control over “money” go without an immense fight .Cryptocurrency and particularly bitcoin is the first challenge to this system—and perhaps the last chance -to stand up to this dystopian future( which frankly is already being implemented)
The current workers in the legacy financial system ( or rather hopefully the few that try to think out of the confines of their historic safe institutional havens ) must perhaps think of what their children and grandchildrens situation will be .
The world is changing exponentially , few are prepared –but it is possible to be. This current techno revolution can go either way–better or worse .The choice has to be made now

End of comments.

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