After launching the Bitcoin futures and sending the price of this cryptocurrency spiralling up the ladder, CBOE has once again applied to the Securities Exchange Commission for listing six Bitcoin-based Exchange Traded Funds.
This has been viewed as an initiative of the company to reap utmost profit out of this emerging new asset class. Irrespective of scheduling a 2018 date for coming ahead with Bitcoin futures, CBOE took the crypto world by surprise when it launched its crypto linked derivatives earlier this month by edging past arch rival CME Group. The six funds which CBOE have applied for launching in ETF mode are:
- First Trust Inverse Bitcoin Strategy ETF
- First Trust Bitcoin Strategy ETF
- REX Short Bitcoin Strategy ETF
- REX Bitcoin Strategy ETF
- GraniteShares Short Bitcoin ETF
- GraniteShares Bitcoin ETF
Traders can make use of these exchange traded funds for betting on the performance of these volatile cryptocurrency futures contracts. From the beginning of this week, Bitcoin has fallen by 44% to $11,000 on Friday. A CBOE spokesperson was quoted as telling CNBC that,
“Given the success of the launch of our bitcoin futures, several partners are very interested in moving forward with the development of an exchange-traded product.”
As per the First Trust filing, the fund “intends to invest primarily in Bitcoin Futures Contracts, [though] it may also invest in other Listed Bitcoin Derivatives, OTC Bitcoin Derivatives, U.S. exchange-listed ETPs, and Non-U.S. Component Stocks (collectively, ‘Bitcoin Instruments’).
A majority of assets will be placed by the REX ETFs in cash and bitcoin derivatives but it can also invest in ETPs listed in U.S. exchanges. The GraniteShares ETFs would also walk in similar footsteps. These filings of Cboe Global Markets come at a time when NYSE had filed a petition for listing two bitcoin ETF’s as exchanges and reaping the most out of crypto space.