U.Today - The count of Ethereum and Bitcoin futures exchange-traded funds (ETFs) applications to twelve following recent filings by Bitwise, a leading provider of index and beta crypto funds.
The company filed for two ETFs, with equal weight and market weight versions of their dual Bitcoin and Ethereum futures ETFs.
Bitwise's Bitcoin and Ether Market Cap Weight Strategy ETF, the most recent product, aims to offer market capitalization-weighted exposure to Bitcoin and Ether futures contracts, without directly investing in Bitcoin or Ether. Managed by Bitwise Investment Manager and Vident Advisory, the ETF's allocation between Bitcoin and Ether futures contracts is determined by their respective market capitalization and rebalanced monthly.
The ETF invests cash-settled, front-month futures contracts, which are contracts with the shortest time to maturity, and may also include back-month, or longer maturity contracts. Both Bitcoin and Ether Futures Contracts are standardized, cash-settled futures contracts traded on the Chicago Mercantile Exchange (CME).
When a futures contract is about to expire, the holder, in this case, the ETF, must sell the contract and purchase new ones with a later expiration date, a process known as "rolling". The continuous buying and selling could lead to higher portfolio turnover for the ETF.
This brings the total number of Ether futures ETF filings to a full dozen, with a strong indication that the count will continue to rise.
As , ETF analysts James Seyffart and Eric Balchunas have revised the probability of a Bitcoin ETF approval to a promising 65%. A few months prior, the odds were pegged near an almost impossible 1%.
This revised estimate has been influenced by multiple factors, notably including the perceived softening stance of Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC).