[2017-12-11] New Bitcoin ETF Filings After CBOE Futures Debut

[digodk]

Source: https://www.coindesk.com/new-bitcoin-etf-filings-follow-cboe-futures-debut/

New public filings suggest that the launch of new bitcoin futures products in the U.S. has renewed a push to launch exchange-traded funds (ETFs) tied to the cryptocurrency.

According to the Securities and Exchange Commission's EDGAR system, new applications have been received for the VanEck Vectors Bitcoin Strategy ETF, as well as both the REX Bitcoin Strategy ETF and REX Short Bitcoin Strategy ETF. Connecticut-based REX's filing is dated Dec. 8, whereas VanEck's is dated Dec. 11, the records show.

As previously reported, filings from these firms were withdrawn earlier this year after the SEC raised questions about the timing of the launches.

"[SEC] Staff expressed the view that it is the Commission's policy to not review a registration statement for a fund where the underlying instruments in which the fund intends to primarily invest are not yet available," VanEck assistant general counsel Matthew Babinsky wrote in a letter in late September. REX went on to make a similar statement the following month.

The timing is notable, given that Chicago-based CBOE launched its initial bitcoin futures products on Sunday. That opening was marked by a near-simultaneous spike in the price of bitcoin and loss of connectivity on the exchange operator's website.

Subsequent reports show that CBOE's self-imposed circuit-breakers – which pause trading during big price swings – have activated in the hours since the futures trading went live.

According to data from CNBC, the price of CBOE's January futures contract is trading at $17,790 as of 10:14 a.m. EST, on a volume of 3,011 following the start of trading.

[iamTom123]

This is quite expected as one of the many ripple effects for the launch of the Bitcoin Futures. Now, there is already a good probability that this time around SEC will consider these applications more seriously as there is now the futures platform to lean on for ETFs. Looking at ETF and ETN in comparison with the futures I personally prefers the former. Now, all of these applications are telling us that Bitcoin is now getting into the mainstream acceptance by people in the traditional finance sector. Next, year there would be more similar applications and this would not be limited in USA alone as I am sure that there are now many plans from other parts of the world to also introduce their version of the futures and the ETFs. Would this trend be helping Bitcoin or will they not stifle its growth? That remains to be seen...let's find out what can be.

[Kprawn]

One of the excuses why the previous ETFs were not approved, was that unregulated exchanges was a threat. At the time the

Chinese exchanges was unregulated and out of control. Since then the Chinese government made huge changes and closed

down many of these rogue exchanges. I think they can implement some safeguards, like they did with Bitcoin futures to

protect consumers from price manipulation. {If they really wanted to}