A few weeks after postponing Solidx/VanEck’s Bitcoin ETF decision, The US Securities Exchange Commission braces to make the final decision on another Bitcoin ETF decision.
Decision makers at the major regulatory body prepare to come up with the long awaited decision on a pair of Bitcoin ETF’s proposed by Proshares Trust. The ETF’s are titled Proshares Bitcoin ETF and the Proshares Short Bitcoin ETF, and their verdict is expected to come by on the 23rd of August, Thursday
. The two ETF’s were proposed by the company in collaboration with the NYSE Arca. This time around, it’s a unique situation in the sense that there cannot be any further delays. Proshares proposal faces a do or die situation with no provision for further extensions.
Submitted in September last year, Proshares’ proposals are supported by Bitcoin futures instead of the physical backing adopted by other proposed ETF’s. In this case, Bitcoin future contracts traded on the Cboe and CME will be the determining factor behind the ETF’s value.
Following the submission in September, the Proshares Trust went for a withdrawal of the proposed rule change in December. Specifically, the trust highlighted the Proshares Bitcoin Futures/Equity strategy ETF, the Proshares Blockchain strategy and the two ETF’s which are currently under review for the withdrawal.
The move was made following SEC’s decision to turn down a good number of proposals based on Bitcoin’s high volatility during that period. In addition to Proshares withdrawal, a number of ETF proposals having identical qualities voluntarily withdrew from the race and these included VanEck and first Trust Advisors and Direxion Shares.
However, a ray of hope shone on the ETF idea later on in January when the SEC communicated that it was inclined to consider all the proposals which were backed by bitcoin futures by the end of the month.
Today, the idea of a crypto ETF is yet to have the taste of reality as the SEC remains patient in its decision relating to the ETF. The most recent blow to the ETF idea came along last month when the authority denied the proposal filed by the Winklevoss brothers. This was the second disappointment associated with the proposal as it experienced a similar fate in 2017. However, the responsible exchange, Batz Exchange, made an appeal which came to the commissioners’ attention.
Proshares Trust refers to an ETF which was established and manned by a company known as Proshare advisors LLC with a primary focus is equity markets worldwide. Its investments include future contracts and swap agreements which are used to establish investments in stocks of various companies in different industries across the globe. It focuses on large cap companies and has the NSADQ Index as the major daily indicator of market performance. It was established in mid-2006 and is currently headquartered in the United States of America.
On the other hand, the exchange which is acting as the vehicle for the ETF, NYSE Arca focuses on both options and Stocks. It is based in Chicago and under the ownership of the renowned International exchange (ICE).