Exchange-Traded Fund ETF
Latest News

Bitwise Bitcoin Exchange-Traded Fund ETF Filed By Stock Exchange

Bitcoin exchange-traded fund (ETF) is filed by a widely known stock exchange. Of course, This sees the exchange getting in the Bitcoin (BTC) game.

More so, NYSE Arca just files for a physically backed Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).

Notably, this is Alongside Bitcoin index provider Bitwise. Also, NYSE Arca is seeking for a Bitcoin exchange-traded fund (ETF) with direct exposure to Bitcoin.

Meanwhile, Matt Hougan, Bitwise’s chief intelligence officer explains NYSE Arca’s application will hold actual Bitcoin. Instead of, just Bitcoin futures.

“Today NYSE filed for a Bitwise Bitcoin ETF!”

“It would hold actual BTC, *not* futures.”

“There’s already a separate BTC futures-based Bitwise ETF filing. But actual BTC is better.”

“And we believe it’s finally possible.”

“We’re sharing 100+ pages of analysis on why.”

Related Posts – India’s CryptoTech sector expected to grow to USD 241 million by 2030

Also, Related Posts – Cryptocurrency held by 16% of Urban Indians: Kantar Survey

Related Posts – Indian crypto exchange CoinSwitch Kuber Gets $260 million in Series C Funding from a16z

Furthermore, Hougan outlines three reasons why holding actual BTC is preferable to futures.

Firstly, this will save the firm roughly 6-12% in costs which is with futures funds.
Secondly, ETFs cannot hold 100% Bitcoin futures. While, Hougan predicts a Bitcoin Futures ETFs will come with about a 15% dilution.

Thirdly, he explains that futures come with tail risk. which of course, exposes investors to their assets’ most extreme decline performance. However, by just holding BTC, such risk will be out of the way.

“In sum: A futures-based Bitcoin ETF comes with ~6-12% all-in costs, ~15% dilution, and tail risk.”

“Useful for certain investors, but not ideal.”

“A direct BTC ETF avoids all that.”

Related Posts

Ripple Joins The NFT Craze, launches $250 million ‘Creator Fund

QNB, Africa And Middle East’s Largest Financial Institution in Partnership with Ripple

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.