NYSE Looking for Regulatory Approval on Leveraged Bitcoin ETF

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FASCINATING. NO, Fascinating 2X. All the chatter and comments on cryptocurrencies (namely Bitcoin) really make getting up every morning a real treat. Bitcoin too risky?; Bitcoin $1M?; Bitcoin a fraud (Jamie Dimon)?; Bitcoin needs regulation?; Bitcoin led by “stupid investors” (David Stockman)?; Bitcoin changes the world?. Etc, etc etc, but you get it. So what do you do? OH, let the NYSE create LEVERAGED ETFs for investors/traders. How silly of all of us. If the SEC and the NYSE think “regular” bitcoin and their futures are risky the ONLY way to manage that risk is to…….LEVERAGE. FOLKS, this is way to easy. I am going to create a 10X ETF funded by an ICO to take ALL the risk out of bitcoin. Anybody want in?
(Bill Taylor/CEO)

“The New York Stock Exchange has asked the Securities and Exchange Commission to allow it to list five bitcoin-related exchange-traded funds (ETFs) on one of its markets, according to an SEC filing.

The ETFs were created by Direxion Asset Management to track bitcoin futures trading. While they are not tied to the price of bitcoin itself, the funds aim to multiply investor returns when compared to the underlying market, the filing said.

The instruments, named 1.25X Bull Fund, 1.5X Bull Fund, and 2X Bull Fund, will leverage “investment results (before fees and expenses) that correlate positively to either 125%, 150%, or 200% the daily return of the target benchmark,” the filing said.

For each fund, that means a 1 percent rise in the price of bitcoin futures should result in a per-share gain of between 1.25 percent and 2 percent, depending on which Bull Fund is used. However, the potential for higher rewards also comes with higher risk: If the price of bitcoin falls, investors’ losses would be multiplied by 1.25.

As such, the funds are not intended for long-term investing, the filing said. The NYSE has issued several filings related to the bitcoin market, including for bitcoin-related ETFs, with the SEC.

If the SEC approves this request, the five ETFs will be listed on Arca, a secondary marketplace on the NYSE. The news was first reported by Business Insider and Reuters.

The NYSE’s move comes after two of its rival exchanges, the Cboe and the CME, won approval to list bitcoin futures…”

Full story at CNBC.com