You can already trade Bitcoin futures through a commodity ETF


(Bloomberg) – The crypto world is in turmoil over the idea of ​​an exchange-traded fund that tracks Bitcoin futures. It turns out that you can already buy an ETF that offers such exposure.

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The actively managed WisdomTree Enhanced Commodity Strategy Fund, ticker GCC, added an allocation of around 3% to cash-settled Bitcoin futures contracts traded on the Chicago Mercantile Exchange, the fund manager said. This makes it the first ETF to provide exposure to crypto assets through cryptocurrency-linked futures, according to WisdomTree, which has the ability to increase the allocation by up to 5%.

“We recognize the growing number of advisors and investors who allocate digital assets and investments that provide exposure to digital assets,” said Jarrett Lilien, president of WisdomTree. “We have made a strategic effort in recent years to invest and develop expertise in the space.”

The $ 183 million fund, launched in late 2020, gives investors exposure – via futures contracts – to four commodity sectors: agriculture, industrial metals, energy and precious metals. The company’s website says GCC’s cumulative return is around 24% this year.

Earlier: Bitcoin Futures ETFs Set to Take a Milestone with Their U.S. Debut

Bitcoin, up about 30% over the past month, has rallied with optimism. ETF issuers will not face resistance from the Securities and Exchange Commission to launch products linked to Bitcoin futures, a format the regulator has suggested may be more favorable.

ProShares is preparing to launch its Bitcoin futures fund on the New York Stock Exchange on Tuesday. Others could follow soon after: in early October there were 12 ETF term deposits before the SEC. Ten of them are filed under the Investment Company Act of 1940, which the SEC suggested promoting, while two more are under the 1933 Act, according to James Seyffart of Bloomberg Intelligence. Another, filed under the 1940 law, offers to hold a combination of crypto stocks and Bitcoin futures. The 1940 law is seen as a way to provide better protection for investors.

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