Following recent registrations by Bitwise, a top supplier of index and beta crypto funds, the number of applications for Ethereum and Bitcoin futures exchange-traded funds (ETFs) has risen to twelve.
The business submitted two ETF applications for their dual Bitcoin and Ethereum futures ETFs, including equal weight and market weight variants.
The most recent offering from Bitwise, the Bitcoin and Ether Market Cap Weight Strategy ETF, attempts to provide market capitalization-weighted exposure to Bitcoin and Ether futures contracts without actually investing in either cryptocurrency. The allocation between Bitcoin and Ether futures contracts in the ETF, which is run by Bitwise Investment Manager and Vident Advisory, is based on each currency’s market capitalisation and is updated every month.
The ETF primarily invests in cash-settled front-month futures contracts, which have the shortest maturities. It may also invest in back-month contracts, which have longer maturities. The Chicago Mercantile Exchange (CME) offers regular, cash-settled futures contracts for both bitcoin and ether.
A futures contract’s holder, in this example, the ETF, must roll over the contract when it is ready to expire by selling the current contract and buying new ones with a later expiration date. Higher portfolio turnover for the ETF might result from the ongoing buying and selling.
With a strong hint that the number may increase further, this takes the total number of Ether futures ETF filings to twelve.
According to U.Today, ETF researchers James Seyffart and Eric Balchunas have raised the likelihood that a Bitcoin ETF would be approved from a promising 35% to a gratifying 65%. The odds were estimated to be around an almost unfathomable 1% a few months ago.
Numerous factors, most notably the perception of Gary Gensler, head of the U.S. Securities and Exchange Commission (SEC), moderating his position, have affected this updated estimate.
