“The SEC rejected a bitcoin ETF proposed by Tyler and Cameron Winklevoss in March. The agency said in a filing on its website that Bats BZX Exchange, where the fund would’ve been listed, would be unable to enter into necessary surveillance-sharing agreements given that ‘significant markets for bitcoin are unregulated,’” according to Bloomberg.
Cboe, which acquired BATS, is also among the U.S. exchange operators pursuing bitcoin futures.
Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies. They are also a key component in the creation of many futures-backed ETFs utilized by a range of investors.
Some market observers believe the launch of bitcoin futures will speed the introduction of exchange traded funds based on the digital currency. In recent weeks, several ETF issuers have also filed plans for blockchain ETFs, which would hold stocks with exposure to the digital currency trade.
For more information on the cryptocurrency market, visit our Bitcoin category.