Recently, NYSE Arca filed proposals with the US Securities Exchange Commission to have the rules changed. The aim is to allow the listing of two funds on the stock exchange, which would be tied to Bitcoin futures. According to public records, the company is interested in listing a pair of ETFs named ProShares Short ETF and ProShares Bitcoin ETF. These companies were initially proposed on the month of September. Public records show that the company owned by ICE made the submissions on December 4.
What Would the ETFs Track?
In the submissions, the company indicated that the ETFs would be tracking two future contracts that were recently launched. CME Group and CBOE released their contracts in December. The company wrote that the objective of the fund would be to seek results, prior to expenses and fees, which correspond to the performance of Bitcoin futures contract listed and trade on CME or CBOE for a single day, and over time.
This filing is quite significant; it is especially so when you consider that the release of products related to cryptocoins has gained traction in recent years. While there have been numerous filings with the SEC on ETFs related to cryptocoins, none have been approved yet. However, the filing by a major player such as the ICE-affiliated NYSE Arca, may suggest that some of these proposals may be entering the formal approval stages of the SEC.
Previous Attempts by NYSE Arca
A while back, NYSE Arca tried to list an ETF related to SolidX. However, the SEC refused to allow the rule change. That was in March 2017. Later on, the SEC shot down another ETF proposal. Tyler and Cameron Winklevoss were responsible for that particular one. However, the SEC has since started a review of the decision, following a formal request made by the Bats BZX exchange.
What Could the Impact of the Move Be?
If it gets through, an ETF would provide investors with a new way to invest in Bitcoin. This is especially attractive considering that the cryptocoin has been on a bull run this year. Investors are ready for exposure to the market, which has given major boosts to stocks of companies that claim to want to focus on cryptocoins.
Besides that, if the proposals go through, it would make it quite easy to predict the drop in the price of Bitcoin. As of now, it is almost impossible to take a short position on this cryptocoin. This is despite the widespread rumors that a bubble is in the offing. Thus, it could help many investors with pent-up needs, to take short positions.
In fact, this announcement comes just as Bitcoin appears to have lost a bit of steam. It recently lost about 20% after it nearly broke through the $20,000 mark.
Do you think the application by NYSE Arca will go through? Let us know in the comments below.