New BTC futures ETF

Discussion in 'Crypto Assets' started by Pekelo, Oct 17, 2021.

  1. Pekelo


    Sticker: BITO

    "The SEC allowed an ETF (exchange-traded fund), but not one pegged to the price of Bitcoin, the kind most people wanted. Instead, the agency allowed a Bitcoin futures ETF. What this means is the new fund, which is being packaged by a firm called ProShares, won't give you shares backed by Bitcoin, but shares tied a bundle of contracts to buy Bitcoin in the future."

    "The obvious winners of the new Bitcoin futures ETF will be professional traders and their wealthy clients, who are familiar with concepts like "contango" and are good at making money off it. Indeed, shares of the new ProShares ETF are expected to initially trade at a premium to the actual price of Bitcoin as a result of sophisticated investors who plan to arbitrage future price movements."

    "Other losers of the SEC's decision are the likes of Grayscale and Gemini. These companies are among the oldest in the Bitcoin business and have been asking the SEC to approve their ETF applications for years and years—only to see Gensler decide this summer that a futures ETF was the way to go. This comes as a special sting to Grayscale since the company's core product—shares of a trust backed by Bitcoin that trade on the OTC market—is looking increasingly expensive and irrelevant. The company has long been ready to convert its product into a standard ETF but now must hurry up and wait."
    Last edited: Oct 17, 2021
  2. Nobert


    Etfs made of air that was made of air and that air was made of single code line in the screen.

    What would be a next level. Maybe some sort of fractional shares of such product. Then options for those shares (naked ofc, to win big).

    And then, what could go wrong.
    Hey, but don't worry -

    zdreg likes this.
  3. MrMuppet


    Maybe a futures contract for dollars that are traded outside the grip of the FED ecosystem in a black market that only a handful of players can access?
  4. maxinger


    I doubt this product will survive.
    I doubt traders will be interested in this etf

    Just look at micro btc futures.
    After so many years. The volume traded is still very low
  5. BITO filled form:

    What could go wrong?

    Environmental risk
    : Bitcoin mining currently requires computing hardware that consumes large amounts of electricity... Public perception of the impact of bitcoin mining on climate change may reduce demand for bitcoin and increase the likelihood of regulation that limits bitcoin mining or restricts energy usage by bitcoin miners (as in China).
  6. Nobert


    So this is what Soros been up to lately.
  7. Because not like commodity future, the BTC future has no impact on BTC spot price. the fundamental reason is BTC is already the digital currency, why need the future? lol
  8. Pekelo


    Because brokers want to have more products and fees, and traders want volatility and access to BTC without the extra pain of opening a new account. Oh yeah, and leverage too.
    KCalhoun likes this.
  9. MrMuppet


    Yoyo Trader and SunTrader like this.
  10. lindq


    Next level is an NFT of a screen-grab of the first trade of the ETF of the future of the coin.
    #10     Oct 17, 2021
    ITM_Latino and Nobert like this.