Bitcoin took another step towards going mainstream after the New York Stock Exchange (NYSE) filed with the Securities and Exchange Commission (SEC) to list Bitcoin ETFs. The ETFs would let traders bet on how the Bitcoin futures contracts will perform.
The NYSE wants to list the ProShares Bitcoin ETF and the ProShares Short Bitcoin ETF. Earlier in September, ProShares, a provider of ETFs with more than $29 billion in assets under management, filed the documents with the SEC for the two Bitcoin ETFs.
The custodian of these exchange-traded funds would be Brown Brothers Harriman. The bank's foreign exchange strategists, Marc Chandler and Win Thin, are most likely to be among currency brokers.
The recent trends have backed Bitcoin and the other cryptocurrencies which are highly volatile and unregulated. Earlier this month, Bitcoin futures started trading on Chicago Board Options Exchange (Cboe) and CME.
The launch of Bitcoin futures at the highest level is said to have paved way ETF product. It has also drawn the attention of professional investors and oversight.
Brown Brothers' global head of emerging markets strategy, said that it is difficult for currency analysts to follow trends such as Bitcoin ETFs but it hints at further mainstreaming. He also said more regulatory oversight might come out of this move.
Bitcoin has soared 1,900 percent in the past year, according to coinmarketcap.com website. However, the cryptocurrency’s Cboe futures depreciated by 3.6 percent on Wednesday.
According to the SEC filing, "the fund seeks to benefit from daily gains in the value of the Bitcoin Futures Contracts. The ETF will not be benchmarked at the current price of the crypto currency 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 enthusiasts have long waited for an ETF for the digital currency.
Also read: Bitcoin: What's ahead for 2018?