Kriptonyte noticeably brightened when the American Commission on securities and exchange Commission (SEC) published a paper on two new applications for listing bitcoin ETF-funds on the stock exchange New York Stock Exchange (NYSE) Arca. This writes Bitcoin.com.
This time the SEC is considering two bitcoin-ETF-Fund both from the company Pro Share Capital Management LLC. This is a relatively small firm which is engaged in management of investment funds. Currently under management is just under $ 30 billion. Pro Shares known by many ETF products with an eye on the strategic component. Their ETF funds usually come in three categories: alpha, ultra and shorts.
The first index-linked Credit Suisse, the second – a ETF-funds with double shoulder, and the third is inverse ETF funds. As for ETF-funds characterized by low fees and taxes, they can be very “delicious” for those who want to make money on bitcoin. In addition, ETF funds can provide long-term savings instrument, which is sometimes even better than traditional mutual funds.
Approval from the SEC waiting for two ETF Fund – ETF Shares Pro Bitcoin and Pro Shares Short Bitcoin ETF. Thanks to them, retail investors will have the opportunity to profit from bitcoin even without actually having access to the crypto wallets and keys. However, the bitcoin community concerned about Fund Pro Shares Short Bitcoin ETF. Recent experience shows trading in futures on the Cboe and the CME, the output of bitcoin in the mainstream can have a negative impact on its course. Some commentators have linked the launch of futures on bitcoin in December, with the subsequent depreciation of the currency.
In the SEC document is, words that cause special interest – like the “start process” or “approve or reject”. This may indicate that the SEC statement is the response of authorities to an eight-page open letter to Chris Concannon, COO and President of Cboe.
“Although the contributions associated with cryptocurrencies, cause a lot of unique challenges, Cboe sure that they do not require significant revision of the established assessment principles in respect of rate, liquidity, storage, disposition, arbitration and manipulation. On the contrary, every cryptocurrency Fund and the underlying cryptocurrency deposits must be assessed on an individual basis – like all the old funds and the deposits underlying them”, – wrote in an open letter, Concannon.
The SEC document ends with a call for commenting and asking commenters to answer a few questions. They address different topics, from the principles which are the foundations to what will happen if the blockchain of bitcoin will happen again the fork.
In addition, in paragraph 11, the SEC asks: “How, according to commentators, the investor can track the share price in the presence of the risk of manipulation and fraud on the grounds, where the sale of a bitcoin, and when, perhaps, the big difference between the price of a bitcoin futures and bitcoin exchange rate itself?”