Decision on Proshares Bitcoin ETF’s by SEC tomorrow
Subscribe
The two Proshares ETF’s which is the ProShares Bitcoin ETF along with the Short Bitcoin ETF will have a final decision tomorrow, 23rd August. Proshares is a division of the largest provider of ETF’s – ProFunds Group with over $30 billion in assets.
The Proshares ETF that will be debated tomorrow was filed in December 2017 and published in the Federal Register on the 26th of December 2017. Thus making it the first ETF to be submitted and hence tomorrow’s decision will set the flow of events for the remaining ETF’s to follow.
If the Proshares ETF does get approved it will not be backed by actual Bitcoin holdings but from values of BTC future contracts and their performance on CBOE and CME exchanges.
A Cryptocurrency enthusiast American attorney by the name of Jake Chervinsky explained on Twitter that the ETF’s discussed tomorrow would have no repercussions whatsoever as the ETF’s will not buy, sell or hold any actual BTC.
12/ As I mentioned above, the ProShares ETFs are entirely derivative-backed. That means they wouldn't buy, sell, or hold any actual bitcoin.
The bull theory is that an ETF would make bitcoin available for institutional investors, but does it help if they only buy derivatives?
— Jake Chervinsky (@jchervinsky) August 17, 2018
However, Jake Chervinsky expressed the importance of ProShares importance as it will set the tone for the remainder of 2018. The next in line is GrainitShares on September 15th.
2/ These ETFs are important: they're the first ones that the SEC will approve or deny in 2018 & will set the stage for others in coming months.
Of course, nobody knows what the SEC will decide, but we can use their recent statements to figure out what factors they'll consider.
— Jake Chervinsky (@jchervinsky) August 17, 2018
So far the SEC is not having any of Bitcoin ETF’s with the widely famous Winklevoss brother’s proposal of Bitcoin ETF being denied. However, the SEC Chairman Hester Peirce voted in favour of Winklevoss’s ETF proposal suggesting there might be positivity for ETF. Her pro cryptocurrency stance led to a rise in followers on her twitter account and a nickname ‘Crypto Mom’.
An approval of Bitcoin ETF would be a massive step towards the mass adoption of Bitcoin and a more legitimised stance towards Bitcoin. However what needs to be noted is the last time ETF was denied or delayed, the price of Bitcoin fell to a low of $5,980. With another nine more ETF’s having deadlines in the next two months, tomorrows decision is crucial for a bull run!
Leave a Reply