link1911 link1912 link1913 link1914 link1915 link1916 link1917 link1918 link1919 link1920 link1921 link1922 link1923 link1924 link1925 link1926 link1927 link1928 link1929 link1930 link1931 link1932 link1933 link1934 link1935 link1936 link1937 link1938 link1939 link1940 link1941 link1942 link1943 link1944 link1945 link1946 link1947 link1948 link1949 link1950 link1951 link1952 link1953 link1954 link1955 link1956 link1957 link1958 link1959 link1960 link1961 link1962 link1963 link1964 link1965 link1966 link1967 link1968 link1969 link1970 link1971 link1972 link1973 link1974 link1975 link1976 link1977 link1978 link1979 link1980 link1981 link1982 link1983 link1984 link1985 link1986 link1987 link1988 link1989 link1990 link1991 link1992 link1993 link1994 link1995 link1996 link1997 link1998 link1999 link2000 link2001 link2002 link2003 link2004 link2005 link2006 link2007 link2008 link2009 link2010 link2011 link2012 link2013 link2014 link2015 link2016 link2017 link2018 link2019 link2020 link2021 link2022 link2023 link2024 link2025 link2026 link2027 link2028 link2029 link2030 link2031 link2032 link2033 link2034 link2035 link2036 link2037 link2038 link2039 link2040 link2041 link2042 link2043 link2044 link2045 link2046 link2047 link2048 link2049 link2050 link2051 link2052 link2053 link2054 link2055 link2056 link2057

If the NYSE has its way, a risky leveraged ETF which doubles the return of bitcoin could soon hit the market

If the NYSE has its way, a risky leveraged ETF which doubles the return of bitcoin could soon hit the market

If the NYSE has its way, a risky leveraged ETF which doubles the return of bitcoin could soon hit the market

  • The New York Stock Exchange has asked SEC regulators to list five exchange-traded funds that track bitcoin futures on one of its markets.

  • The ETFs are short-term investment vehicles designed to multiply returns in the cryptocurrency market, the SEC filing said.

  • The NYSE has already issued several bitcoin-related filings to the SEC.

If the NYSE has its way, a risky leveraged ETF which doubles the return of bitcoin could soon hit the market
An improvised message tells passersby to "buy bitcoin" on the University of Oregon campus in December 2017 — the same month the cryptocurrency's price rocketed from $10,000 to nearly $20,000.

The New York Stock Exchange has asked the Securities and Exchange Commission to allow it to list five bitcoin-related exchange-traded funds (ETFs) on one of its markets, according to an SEC filing.

The ETFs were created by Direxion Asset Management to track bitcoin futures trading. While they are not tied to the price of bitcoin itself, the funds aim to multiply investor returns when compared to the underlying market, the filing said.

The instruments, named 1.25X Bull Fund, 1.5X Bull Fund, and 2X Bull Fund, will leverage "investment results (before fees and expenses) that correlate positively to either 125%, 150%, or 200% the daily return of the target benchmark," the filing said.

For each fund, that means a 1 percent rise in the price of bitcoin futures should result in a per-share gain of between 1.25 percent and 2 percent, depending on which Bull Fund is used. However, the potential for higher rewards also comes with higher risk: If the price of bitcoin falls, investors' losses would be multiplied by 1.25.

As such, the funds are not intended for long-term investing, the filing said. The NYSE has issued several filings related to the bitcoin market, including for bitcoin-related ETFs, with the SEC.

If the SEC approves this request, the five ETFs will be listed on Arca, a secondary marketplace on the NYSE. The news was first reported by Business Insider and Reuters.

The NYSE's move comes after two of its rival exchanges, the Cboe and the CME, won approval to list bitcoin futures.

The buzz around bitcoin and its competing digital currencies exploded in 2017, driving a 1,300 percent annual gain in the price of bitcoin. Asset managers have been racing to design more than 10 proposals for bitcoin funds that are currently before U.S. regulators.

New ETFs could make access to bitcoin easier and, in the case of the Direxion product, mean bigger stakes for investors.

The NYSE did not immediately respond to CNBC's request for comment.

Author: Elizabeth Gurdus CNBC

 

Posted by David Ogden Entreprenuer
David ogden cryptocurrency entrepreneur

Alan Zibluk Markethive Founding Member