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Despite Crypto Winter, Bitwise Files for Bitcoin Futures ETF in the US: Report

Summary:
Over a year after the first Bitcoin futures ETF went live in the States, Bitwise has filed to launch its own such product. This comes despite the ongoing bear market, which has seen prices decline and investor interest evaporate. Citing a filing with the US regulators, the Bloomberg report informed that Bitwise’s product would be called Bitcoin Strategy Optimum Yield ETF, under the ticker BITC. Similar to the previously approved ETFs in the US, this one would not hold the asset directly. Instead, it would offer managed exposure to BTC futures contracts on the Chicago Mercantile Exchange (CME) as well as investments in short-term debt securities. BITC’s strategy is designed such that instead of its futures contracts automatically rolling into the next-available contract

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Over a year after the first Bitcoin futures ETF went live in the States, Bitwise has filed to launch its own such product.

This comes despite the ongoing bear market, which has seen prices decline and investor interest evaporate.

  • Citing a filing with the US regulators, the Bloomberg report informed that Bitwise’s product would be called Bitcoin Strategy Optimum Yield ETF, under the ticker BITC.
  • Similar to the previously approved ETFs in the US, this one would not hold the asset directly. Instead, it would offer managed exposure to BTC futures contracts on the Chicago Mercantile Exchange (CME) as well as investments in short-term debt securities.

BITC’s strategy is designed such that instead of its futures contracts automatically rolling into the next-available contract based on a predefined schedule, it would roll into the one that “exhibits the highest implied roll yield under current market conditions.” – reads the report.

  • The first Bitcoin futures ETF was approved by the US Securities and Exchange Commission in October last year and generated trading volumes of over $1 billion during its first day.
  • A few more such ETFs hit the market in the following months. However, the market condition was entirely different back then.
  • Bitcoin and the rest of the crypto assets were riding high, charting ATHs frequently, and the interest in the industry was significantly more obvious.
  • Most assets are now down by up to 90% from their respective peaks. The demand is lower, which puts the timing of Bitwise’s filing into question.

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