Bitcoin price targets record as ETF products near launch

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The ProShares exchange-traded bitcoin fund will trade futures contracts on the Chicago Mercantile Exchange (CME), which is registered with the Commodities Futures Trading Commission (CFTC). He will not own Bitcoin directly, but will be looking to follow month one bitcoin futures contracts.

This means that the value of short-term contracts should closely follow the spot price, although the prospectus warns that the performance of bitcoin futures and the fund may differ significantly from the performance of bitcoin. Traders typically buy cash-settled futures contracts to hedge their exposure or to speculate on future price movements.

The ETF will charge an annual management fee of 0.95% and Mr Miller said he does not view crypto-tracking ETFs listed on traditional stock exchanges as competition for the multitude of new crypto-only exchanges. due to different fees and product classes.

Kraken has over 80 assets on its exchange, when you trade on Kraken you are trading directly in the market with other counterparties. The fees you pay to a company like Kraken are really low. So, I would say that as long as there is more crypto exposure for people in traditional funds, that’s a good thing, but in terms of head-to-head competition, I don’t think so.

Anti-flood doors

Several other fiat-based ETF issuers have reported plans for forward or synthetic crypto offerings, including Cathie Woods Ark Invest, VanEck, Valkyrie Investments, Invesco and Galaxy Digital. On October 21, the U.S. Financial Stability Supervisory Board is expected to update the market on a report on stablecoin regulation.

In Australia, the Special Senate Committee on FinTech and Regulatory Technology will present a final report on the regulation of digital assets and cryptocurrencies on October 30.

Chi-X chief executive Vic Jokovic last week said the Australian Securities and Investments Commission has taken a cautious approach on the matter to avoid any missteps. Local ETF providers, including Betashares and ETF Securities, have expressed interest in launching cryptocurrency-based funds.

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