ProShares Bitcoin ETF slated to debut on Tuesday

Subscribe to The Global Herald in Google News

CNBC Television published this video item, entitled “ProShares Bitcoin ETF slated to debut on Tuesday” – below is their description.

CNBC’s Bob Pisani highlights the first Bitcoin futures ETF that begins trading on Tuesday. Pisani discusses how this ETF could be halted before Tuesday and critics of the futures ETF. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Cryptocurrency enthusiasts and the exchange-traded fund industry are bracing for the first bitcoin futures ETF to begin trading Tuesday, when the ProShares Bitcoin Strategy ETF is scheduled to debut at the New York Stock Exchange.

There is, however, one catch: The ETF goes active unless the Securities and Exchange Commission objects to the filing, which can happen right up until midnight Monday.

Despite the uncertainty, many believe the odds are in favor the ETF will begin trading as scheduled.

“I would give it a 75% chance of approval,” ETF Trends director of research Dave Nadig said.

A bitcoin futures ETF: a disappointment, or step in the right direction?

The ETF is based on bitcoin futures that trade on the Chicago Mercantile Exchange. It’s a disappointment to many in the bitcoin community, who would prefer a pure-play ETF backed by physical bitcoin. They complain that the high cost of rolling into futures contracts will not adequately track the spot price of the cryptocurrency, and that the SEC should proceed to approval of a pure-play bitcoin ETF.

“A futures is a derivative of the spot market, so if you are comfortable with futures, why wouldn’t you be comfortable with the spot market?” Grayscale Investments CEO Michael Sonnenshein said. Grayscale is a digital currency asset manager; it runs the Grayscale Bitcoin Trust. Grayscale has indicated it intends to convert GBTC into a bitcoin ETF should they receive regulatory approval.

Regardless, most bitcoin activists — and the ETF community — are cheering it as a small but critical step to open the crypto market to a much wider audience.

“This is a crawl, walk, run market,” Bitwise Asset Management chief investment officer Matthew Hougan said. “The smallest step the SEC can take right now is to launch a bitcoin futures market because it is a regulated market.”

That fact — that futures are a regulated market — is critical to understanding why SEC Chair Gary Gensler is likely to allow a bitcoin futures ETF to begin trading, but not a pure-play bitcoin ETF.

Gensler and the SEC have a crypto problem, and a bitcoin futures ETF will help

Gensler wants to be supportive of financial innovation like crypto, but he lacks regulatory authority over critical areas like crypto exchanges.

“Gensler wants to be innovative and yet balanced,” Hougan said. “He doesn’t want to kill financial innovation [around crypto]. He wants to crack down on the fraud and nefarious elements and the criminal activity. He wants to put a regulatory framework around it.”

But he doesn’t have a regulatory framework, at least not yet. It’s likely that Congress will need to step in and provide a broad regulatory structure for the whole crypto space, but the chances of that happening soon are slim.

However, the crypto space is growing so fast Gensler is under enormous pressure to do something. The SEC can only go so far in claiming regulatory jurisdiction without ruffling the feathers of other agencies.

So the temporary solution is to allow a bitcoin futures ETF to begin trading.

A bitcoin futures ETF allows the broader public to get involved without many of the problems around owning the virtual currency. First, you don’t have to worry about custody. There’s also no one complaining they forgot their exchange password; and there are no issues around someone owing bitcoin on an unregulated exchange who had their crypto stolen by cyberthieves.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online

Get the latest news: http://www.cnbc.com/

Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC

Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC

Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC

Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC

#CNBCTV

CNBC Television YouTube Channel

Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.


Subscribe to The Global Herald in Google News

About This Source - CNBC Television

CNBC is an American pay television business news channel, which primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

As of February 2015, CNBC is available to approximately 93,623,000 pay television households (80.4% of households with television) in the United States.

Recent from CNBC Television:

  • Cramer’s lightning round:
  • Explosives are vanishing from military bases around the country
  • Who’s winning the race to develop hypersonic weapons?
  • In This Story: Bitcoin

    Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its implementation was released as open-source software. Bitcoin was the first decentralized cryptocurrency.

    4 Recent Items: Bitcoin

  • Final Trades: NVO, TSE, WMT & bitcoin
  • Market Coverage: Friday December 3 Yahoo Finance
  • Ethereum developer: Spacemesh is ‘greener than bitcoin or ethereum mining’
  • Bitcoin is ‘one of the biggest bubbles ever’: Strategist
  • In This Story: Gary Gensler

    Gary Gensler is an American government official and former investment banker serving as the chair of the U.S. Securities and Exchange Commission. Gensler previously led the Biden–Harris transition’s Federal Reserve, Banking, and Securities Regulators agency review team.

    4 Recent Items: Gary Gensler

  • China Criticizes The U.S. for Moving to Delist Chinese Firms
  • David Rubenstein Says Gensler Will Deal With Crypto
  • Gensler on the possibility of another January market blowup
  • SEC’s Gensler on next steps after GameStop trading frenzy
  • In This Story: New York Stock Exchange

    The New York Stock Exchange is an American stock exchange at 11 Wall Street in the Financial District of Lower Manhattan in New York City. It is by far the world’s largest stock exchange by market capitalization of its listed companies at US$30.1 trillion as of February 2018.

    2 Recent Items: New York Stock Exchange

  • The NYSE welcomes @lifegoalinvest to celebrate the LifeGoal Home Down Payment Investment ETF $HOM
  • China Criticizes The U.S. for Moving to Delist Chinese Firms
  • Leave a Comment

    We don't require your email address, or your name, for anyone to leave a comment. If you do add an email address, you may be notified if there are replies to your comment - we won't use it for any other purpose. Please make respectful comments, which add value, and avoid personal attacks on others. Links are not allowed in comments - 99% of spam comments, attempt to post links. Please describe where people may find additional information - for example "visit the UN website" or "search Google for..." rather than posting a link. Comments failing to adhere to these guidelines will not be published.

    Posting....