Bitwise Files For Bitcoin Futures ETF Despite Crypto’s ‘Dark Days’

Historical turmoil in the crypto market caused by the FTX boom hasn’t stopped a fund issuer from moving towards a new investment product tied to Bitcoin.

Bitwise on Wednesday submitted an application to launch Bitcoin Strategy Optimum Yield ETF, will trade under the ticker BITC. According to the filing, the fund will provide managed access to CME-traded Bitcoin futures contracts and investments in short-term debt securities. It will not hold the token directly because WE The Securities and Exchange Commission has yet to approve such a product.

The filing does not specify how much the fund will charge for management.

“This is a signal for the record — Bitwise is telling their customers and the rest of the world that despite the dark days, Bitcoin is alive and well and they still believe in the future,” said Eric Balchunas at Bloomberg Intelligence know.

The crypto market is currently going through one of its most tumultuous periods, with the sudden collapse of the once beloved digital asset exchange FTX devastating other players in the industry. , who were affected by several crises earlier in the year. The prices of all types of tokens, including Bitcoin and Ether – the two largest by market value – have fallen. Bitcoin traded around $16,500 on Friday, down from nearly $69,000 about a year ago. Ether hovers around $1,180, after trading above $4,000 last December.

ETFBITC’s strategy, according to the filing, is designed so that instead of its futures contract automatically switching to the next available contract based on a predefined schedule, it will switch to an “express” contract. The highest implied roll yield under current market conditions. “

US investors received their first Bitcoin futures ETF last year, when ProShares launched the Bitcoin Strategy ETF (ticker BITO). That fund has been closely monitoring Bitcoin’s price this year, with each drop about 64% since the beginning of 2022.