With Bitcoin Futures Set to Begin Trading, ETFs Are Scrambling to Be First in Line
The Exchange Traded Fund (ETF) sector is ready and waiting for cryptocurrency futures set to be traded on the CBOE Global Markets exchange this week. As futures become available on the market, funds will be able to actively trade options which are based on the underlying cryptocurrencies.
As many as 12 ETF companies have active applications in the U.S. market to provide funds which give investors access to cryptocurrency or blockchain related companies.
Two Canadian funds have similarly made applications to launch what would become the first ever blockchain-oriented ETF, in an attempt to cash in on the cryptocurrency mania which has gripped financial markets in recent months.
Perhaps the most notable ETF application came approximately three years ago when an application was submitted for a Winklevoss Bitcoin ETF with the ticker symbol COIN, the first of its kind in an evolving industry. Horizons, the company famous for launching Canada’s first cannabis ETF Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ), has also indicated it intends to get in on the party and file a prospectus for a fund which closely tracks the performance of bitcoin for interested investors.
As the value of cryptocurrencies continues to climb, expect more and more avenues to become available for investors interested in diving into this space. Whether blockchain technology ends up being as important as the internet remains to be seen, however what is certain is that money managers will find a way to profit off of the mania.
Invest wisely, my friends.