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Bitcoin Futures-Based ETF Likely To Be Approved in the US (thestreet.com)

Posted by msmash on from the up-next dept.

The race is on: who will be the first to launch a Bitcoin exchange-traded fund in the United States? From a report, shared by a reader: In Europe, there is already a Bitcoin exchange traded note (ETN) available to investors. In the U.S., it is widely anticipated a Bitcoin ETF will be be approved by the U.S. Securities and Exchange Commission (SEC) very soon. In Europe, ETNs are designed to track the movement of Bitcoin against the U.S. dollar. The ETNs are Bitcoin Tracker One, which is traded in Swedish krona and Bitcoin Tracker EURO, which is traded in euro. Both ETNs are issued by XBT Provider AB and traded on Nasdaq OMX (Stockholm). Dave Nadig, CEO of ETF.com and previously the director of ETFs at FactSet Research Systemsm believes we can expect to see Bitcoin Futures-based ETF launched in the U.S. by the end of this year. "Yes, you can already trade a derivative in Europe, an exchange traded note which tracks Bitcoin," Nadig adds. "Then the race in the U.S. is the race to see what gets approval first. Will it be a Bitcoin future or a straight up Bitcoin holding ETF? My bet is that we will see Bitcoin futures approved fairly quickly."

5 of 59 comments (clear)

  1. Buy Tulip Bulbs NOW! by Bruce+Perens · · Score: 3, Insightful

    Bitcoin is a demonstration of the absurdity of fiat currency, taken to excess. Its basis is already-performed work on a computer to come up with a number based on previously-computed numbers. The numbers generated have no practical value except in reference to each other.

    Some people are, absurdly, willing to exchange such numbers for things of real value. But this odd behavior is far from guaranteed to persist.

    Similarly US dollars are based upon the faith in, and credit of, the government of the United States. Said government currently has a head of state who engages in behavior that does not inspire faith, and repeatedly threatens to renege on agreements - thus not providing any operational basis for credit.

    All of this points toward a time in the future at which confidence in currency that does not represent real value will collapse as confidence in it erodes.

    A valid currency would be one that has a non-negotiable value based on provision of food and shelter, these being things essential to human welfare that can not be changed into data or made from data.

    All other currencies are fictional things. That people have faith in them today does not mean they will tomorrow.

    --
    Bruce Perens.
    1. Re:Buy Tulip Bulbs NOW! by JcMorin · · Score: 4, Insightful

      Everything you said is true, it has no value, it's nothing but numbers and electron BUT you can't replicate it, you can transfer it and it's limited... those are good characteristics for using it as money. Some people like the idea you can send any amount you want anywhere on the planet. Bitcoin is an experimental currency that has predicted inflation, against USD and EURO where they race to print as much money as they can... the bets are pretty good IMO.

    2. Re:Buy Tulip Bulbs NOW! by Anonymous Coward · · Score: 2, Insightful

      Money is an invention and Bitcoin is the best private money so far. You are advocating abandoning money and returning to barter? You can not commoditize shelter or food. That is not money. If you call for gold then - yes, gold is one sort of good money. Gold & Bitcoin are both good. Rai stones - not anymore. Bitcoin is still young... look at the volatility and tiny marketcap. This will change in coming years and you will use it too in a decade or so even if you don't know about it. Bitcoin and other crypto - it's like Apple, Google and thousand other stocks. The value is in it's utility to keep the blockchain technology up and running.

  2. Bitcoin by dicobalt · · Score: 3, Insightful

    The currency of choice for anarchists and Ferengi weapons traders.

  3. Re:OK, I get it. Fiat money.... by hord · · Score: 3, Insightful

    But at least Fiat money is attached to a government or governing body and hence an economy.

    When you look at historical societies that have traded using different forms of non-fiat currencies it's hard to argue that you need a central enforcement body. All that is needed for currency trade is the trust that whatever tokens are exchanged can later be exchanged for other goods. Nation states ensure this with military but trading peoples have relied on other methods for at least 10,000 years.

    When you consider that it's all fake, you can bundle anything up like this.