The New York Stock Exchange is looking to enter the race for a bitcoin ETF. A recent filing indicates that NYSE Arca is looking to list two ProShares ETFs tracking bitcoin futures – a long product and an inverse fund.
“Public records dated Dec. 19 show that the company wants to list two ETFs – the ProShares Bitcoin ETF and the ProShares Short ETF – that were originally proposed in September. According to the document, NYSE Arca, which is owned by Intercontinental Exchange (ICE), submitted the proposed rule change on Dec. 4,” reports CoinDesk.
Earlier this month, futures on the hot digital currency launched on the Cboe Futures Exchange. Earlier this week, futures on the cryptocurrency debuted on the CME. Those moves are expected to pave the way for a long awaited bitcoin ETF. The ProShares Bitcoin ETF and ProShares Short Bitcoin ETF would track Cboe futures. Maryland-based ProShares is the largest issuer of inverse and leveraged ETFs.
To date, bitcoin ETFs have not been approved by U.S. regulators. Several ETF issuers filed plans earlier this year for such products, but the plans were scrapped because, at the time of those filings, there was not a bitcoin futures market.
Related: More Issuers Jockey to Join Bitcoin ETF Party
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.
The ProShares filing “is a notable one, given the recent momentum behind financial products connected to the cryptocurrency market. While the past few months have seen several filings with the SEC related to cryptocurrency-tied ETFs, NYSE Arca’s submission suggests that at least some of those proposed products are entering the agency’s formal approval stage,” according to CoinDesk.
Prior to the debut of bitcoin futures on Cboe, at least three issuers filed plans for related ETFs while two such filings emerged around the time futures launched on CME.
For more information on the cryptocurrency market, visit our Bitcoin category.