New Bitcoin ETF Tracks BTC Futures and CoinDesk BTC Trend Indicator Index
Unlike traditional Bitcoin ETFs which are spot-based, this new ETF is setting the bar high with its innovative structure. Not only will it be monitoring BTC futures contracts, but it also keeps a close eye on the CoinDesk BTC Trend Indicator Index. This index is designed to measure the direction and strength of Bitcoin’s price movements using a proprietary signal. This groundbreaking approach provides investors with a broader perspective of the market dynamics.
The Global X Bitcoin Trend Strategy ETF Application
In the wake of a growing interest in Bitcoin ETFs from various financial entities, the application for the Global X Bitcoin Trend Strategy ETF is a significant move. James Seyffart, a Bloomberg ETF analyst, predicts that this particular application stands a good chance of acceptance given its unique structure that sets it apart from spot-based ETF proposals.
The Approval Process
This ETF is expected to follow the same approval process as previously approved Bitcoin futures ETFs, according to Seyffart. The chance of approval seems high, barring an unprecedented SEC decision to force the delisting of all previously approved Bitcoin futures ETFs.
Anticipated Release Date
If regulatory approval is granted, the Global X Bitcoin Trend Strategy ETF will likely be launched in October 2024. This ETF could significantly impact Bitcoin’s price dynamics by attracting a potential inflow of institutional investment due to its increased accessibility.
Surge in ETF Applications
- SEC receiving applications from six firms, including BlackRock
- Proposals from Bitwise, VanEck, WisdomTree, Fidelity, and Invesco for spot Bitcoin ETFs formally acknowledged by the SEC
- Previous spot-based ETF applications rejected due to concerns related to anti-fraud and investor protection standards
Nasdaq’s Involvement
BlackRock has proposed to list its ETF on Nasdaq. In response to the SEC’s aforementioned concerns, Nasdaq is joining forces with Coinbase, the largest US-based cryptocurrency exchange, to supervise trading in the underlying Bitcoin market. CBOE Global Markets has proposed similar surveillance arrangements.
Global X ETFs And CoinDesk Team Up For Groundbreaking New Bitcoin ETF 4.
First Bitcoin futures ETF effect
The importance of these ETFs in Bitcoin’s market cannot be overstated. The approval of the first Bitcoin futures ETF in October 2021 propelled Bitcoin’s value, triggering a spike in its price and causing it to reach a record high of $69,000 in November 2021. Unlike a spot ETF that directly tracks Bitcoin’s price, these ETFs are attached to Bitcoin’s futures contracts.
Current Bitcoin Market Status
The current state of Bitcoin’s market is delicately poised and is barely hanging above a critical support level at $29,900. However, the cryptocurrency faces a potential downside if it takes a bearish dip below $29,500. The market is waiting with bated breath to see the possible impact of these developments on Bitcoin’s future performance.
DISCLAIMER:
The information on this website is provided as general market commentary and should not be construed as investment advice. We highly recommend that you conduct your own research before making an investment decision.
