ICE files for SEC's approval for bitcoin ETF

21.12.2017 / 14:11

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Intercontinental Exchange (ICE)‎‏,‏ ‎has again thrown its hat into the ring to list ‎the first Bitcoin exchange-traded fund, just a few months after the US regulator denied several bids to list ETFs based on the high-flying digital currency.

As revealed in a filing registered with the SEC on December 19, ICE is applying to list ‎two Bitcoin ETFs on the NYSE Arca trading platform, namely the ProShares Bitcoin ‎ETF and the ProShares Short Bitcoin ETF. Neither fund will hold the virtual coin directly, nor ‎track its underlying price, but rather will be exposed to the performance of the US exchange-traded ‎futures contracts. ‎

It further reads: “The value of the Bitcoin Futures Contracts will be based on the expected value of ‎bitcoin at a future point in time, specifically, the expiration date of such Bitcoin Futures ‎Contracts. 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.‎”

The ETF product is expected to expand the audience for virtual currency if the fund is approved by the SEC. The benefits of being first on a major exchange could be big, assuming that Bitcoin does manage to establish itself as a viable asset class in the regulated markets.

Source: Finance Magnates

Trader Bozhidar Arabadzhiev

Original Post: The Race for First Bitcoin ETF Heats Up Again, ICE Files Application with ‎SEC

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ICE files for SEC's approval for bitcoin ETF

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