Two new Bitcoin ETFs Submitted for SEC Approval
Bitcoin is a digital asset with a limited operating history. The performance of the Bitcoin Futures Contracts in which each Fund invests, and therefore the performance of the Funds, can be expected to be very different from the price of bitcoin. The value of a Fund’s investments in Bitcoin Futures Contracts may not be correlated with the price of bitcoin and may go down when the price of bitcoin goes up (and vice versa). An investor should only consider an investment in a Fund if he or she understands the consequences of investing in Bitcoin Futures Contracts.
It may be natural to think that the submission by ProShares Capital will be rejected by SEC due to the rejection of the Winklevoss twins’ attempt earlier this year. However, there is a chance of the approval happening, especially with the great popularity and scale of digital cryptocurrencies.