bitcoin
08
Jan

NYSE moving towards Bitcoin ETFs

NYSE has filed for the permission, to the SEC in the first week of this year for launching five different Bitcoin ETFs. It is for future contracts on the first fully electronic exchange, NYSE Arca.

NYSE Arca is presently trading in more than 8,000 exchange-listed securities. It is ranked number one in trading and listing of ETFs. NYSE Arca is transparent open and closing auctions in ETF’s and is fully automated. A different market structure and functionality at NYSE Arca allows it to deliver the advantage of transparency and speed.

Exchanged products at NYSE Arca are exchange-traded notes (ETNs), exchange-traded funds (ETFs) and exchange traded vehicles (ETVs).

These proposed Bitcoin EFTs will be linked to the immediate prices of Bitcoin futures, which are already listed on the CBOE and CME exchanges.

Bull funds

Three Bull Funds offering 100%, 150%, and 200% returns on the given contracts are categorized as 1.25X, 1.5X and 2X.

These three funds cannot be traded for more than a day and depend on the contract entered. These offer return in percentage.

It should be noted that the investor will lose in the same multiples in case the market tumbles.

Bear funds

These will allow the investor a chance to leverage, in case the value of Bitcoin declines. Here the funds offer 100% and 200%, that is 1X and 2X offer.

But if the benchmark rises in value, the investors will suffer the loss in the compounded multiplier that is 1X or 2X, whichever that they have agreed to.

If permitted to launch Bitcoin futures, NYSE Arca will be the third exchange. Previous exchanges are CBOE and CME. Looking at the urgency, and wasting no time for sending the application to United States Securities and Exchange Commission shows that there is plenty of interest by Wall Street investors in Bitcoin futures.

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