Thursday, January 4, 2018 05.34PM / Evelyn Cheng |
Original Published 4:15 PM ET Thur, 28 Sept 2017 / CNBC.com / Photo Credit: Jin
Lee | Bloomberg | Getty Images
which is the 10th largest ETF company, according to ETF.com, filed Wednesday
with the SEC for two bitcoin ETFs.
ETFs will track bitcoin futures contracts traded on the Chicago Board of
Options Exchange, the filing said.
those futures contracts aren't available yet and VanEck withdrew its
application for a similar bitcoin ETF for that reason.
of the largest sellers of exchange-traded funds has filed for two bitcoin ETFs.
which has about $29 billion in assets under management, filed
Wednesday with the U.S. Securities and Exchange Commission for a ProShares
Bitcoin ETF and ProShares Short Bitcoin ETF.
two ETFs plan to track bitcoin futures contracts traded on the Chicago Board of
Options Exchange and will trade on NYSE Arca, according to the filing.
those futures products aren't available yet.
early August, the Chicago Board Options Exchange said it plans
to offer bitcoin futures in the fourth quarter or early next year, pending
review by the Commodity Futures Trading Commission.
confirmed with CNBC Thursday that is still the case.
absence of the CBOE's bitcoin futures product has proved a stumbling block for
another major ETF company, VanEck, in its attempt to create a similar bitcoin
which ranks 9th in the ETF industry, according to ETF.com, filed
a letter Wednesday with the SEC to withdraw its application for a bitcoin
to the letter, SEC staff told VanEck Vectors ETF Trust on a September 20 call
that the commission's policy is to not review a registration statement for a
fund whose underlying instruments are not yet available.
SEC staff then requested VanEck withdraw its August
11 application for the bitcoin ETF "until such time as the underlying
instruments in which the Fund intends to primarily invest (i.e., bitcoin
futures contracts) become available for investment," the letter said.
SEC declined to comment to CNBC. ProShares had no comment and referred CNBC to
the public filing.
Bitcoin year-to-date performance
which ranks 10th in the ETF industry, according to ETF.com, is known for
selling specialized funds that bet on both the long and short side of the
surged this year from below $1,000 to briefly above $5,000 as investors bet the
digital currency will gain greater acceptance globally as a store of value,
attracting the attention of many on Wall Street. The digital currency traded
above $4,100 Thursday, still up more than four times in price for the year,
according to CoinDesk.
the digital currency can be quite volatile. Bitcoin dropped more than 30
percent in March after the SEC rejected the Winklevoss brothers' application
for a bitcoin ETF, and SolidX
Partners' application for a bitcoin exchange-traded product. The SEC said
in April it is reviewing its rejection of the Winklevoss brothers' application,
and bitcoin has since more than recovered from that plunge.
WATCH: ProShares Hyman
on US economy
growth positive signal for US economy: ProShares' Simeon Hyman 6:37
AM ET Mon, 31 July 2017 | 03:16
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