ProShares Bitcoin ETF slated to debut on Tuesday



CNBC’s Bob Pisani highlights the first Bitcoin futures ETF that begins trading on Tuesday. Pisani discusses how this ETF could be halted before Tuesday and critics of the futures ETF. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

Cryptocurrency enthusiasts and the exchange-traded fund industry are bracing for the first bitcoin futures ETF to begin trading Tuesday, when the ProShares Bitcoin Strategy ETF is scheduled to debut at the New York Stock Exchange.

There is, however, one catch: The ETF goes active unless the Securities and Exchange Commission objects to the filing, which can happen right up until midnight Monday.


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Despite the uncertainty, many believe the odds are in favor the ETF will begin trading as scheduled.

“I would give it a 75% chance of approval,” ETF Trends director of research Dave Nadig said.

A bitcoin futures ETF: a disappointment, or step in the right direction?

The ETF is based on bitcoin futures that trade on the Chicago Mercantile Exchange. It’s a disappointment to many in the bitcoin community, who would prefer a pure-play ETF backed by physical bitcoin. They complain that the high cost of rolling into futures contracts will not adequately track the spot price of the cryptocurrency, and that the SEC should proceed to approval of a pure-play bitcoin ETF.

“A futures is a derivative of the spot market, so if you are comfortable with futures, why wouldn’t you be comfortable with the spot market?” Grayscale Investments CEO Michael Sonnenshein said. Grayscale is a digital currency asset manager; it runs the Grayscale Bitcoin Trust. Grayscale has indicated it intends to convert GBTC into a bitcoin ETF should they receive regulatory approval.

Regardless, most bitcoin activists — and the ETF community — are cheering it as a small but critical step to open the crypto market to a much wider audience.

“This is a crawl, walk, run market,” Bitwise Asset Management chief investment officer Matthew Hougan said. “The smallest step the SEC can take right now is to launch a bitcoin futures market because it is a regulated market.”

That fact — that futures are a regulated market — is critical to understanding why SEC Chair Gary Gensler is likely to allow a bitcoin futures ETF to begin trading, but not a pure-play bitcoin ETF.

Gensler and the SEC have a crypto problem, and a bitcoin futures ETF will help

Gensler wants to be supportive of financial innovation like crypto, but he lacks regulatory authority over critical areas like crypto exchanges.

“Gensler wants to be innovative and yet balanced,” Hougan said. “He doesn’t want to kill financial innovation [around crypto]. He wants to crack down on the fraud and nefarious elements and the criminal activity. He wants to put a regulatory framework around it.”

But he doesn’t have a regulatory framework, at least not yet. It’s likely that Congress will need to step in and provide a broad regulatory structure for the whole crypto space, but the chances of that happening soon are slim.

However, the crypto space is growing so fast Gensler is under enormous pressure to do something. The SEC can only go so far in claiming regulatory jurisdiction without ruffling the feathers of other agencies.

So the temporary solution is to allow a bitcoin futures ETF to begin trading.

A bitcoin futures ETF allows the broader public to get involved without many of the problems around owning the virtual currency. First, you don’t have to worry about custody. There’s also no one complaining they forgot their exchange password; and there are no issues around someone owing bitcoin on an unregulated exchange who had their crypto stolen by cyberthieves.

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42 thoughts on “ProShares Bitcoin ETF slated to debut on Tuesday

  • January 29, 2022 at 1:11 am
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    keep buying and investing in stocks or crypto,soon Bitcoin will hit $100,000

    Reply
  • January 29, 2022 at 1:11 am
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    I really feel left aside hearing and seeing several testimonies from people on profits they make from Bitcoin/Forex Investment. Can someone recommend a good expert that trade on my behalf and generate profit for me.

    Reply
  • January 29, 2022 at 1:11 am
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    The future of currency is crypto! U just have to be patient and don’t tell yourself that you’re going to get rich overnight. Also I believe that if you hold in numerous coins with massive ROI, you’ll be very secure and wealthy in the long run. I think the best plan overall for wealth is being debt free and putting a little of your $ in Stocks, real estate and crypto don’t put all your eggs in 1 basket , have a diversely portfolio and overall you’ll be in a nice place to be financially set and live on your assets and be wealthy

    Reply
  • January 29, 2022 at 1:11 am
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    I <have been investing in stock since 2013, but I must confess that since I started trading and buying crypto I have made more, this is the FOMO October for incoming dip in November. It is manipulated but that can be a good thing if you understand it. We should all know that when these reports are bullish take some off to the side lines, when news gets bearish start buying. "Keep it simple simple" that bear/ correction was the best thing that happened me. but all thanks to John Wesley for his amazing skills for help me to earn 17 BTC through trading chart. I believe we are in the spring phase./

    Reply
  • January 29, 2022 at 1:11 am
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    YOUR ACT👆🏻👆🏼OF KINDNESS AND YOUR SERVICE SHOW HOW BIG OF A HEART YOU HAVE FOR OTHER. THANKS FOR THE 5.9BTC YOU SUCH AMAZING 🥰

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  • January 29, 2022 at 1:11 am
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    in a few months or no time people we definitely be kicking themselves regret for missing the opportunity to buy or invest in cryptocurrency.

    Reply
  • January 29, 2022 at 1:11 am
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    Successful people don't become that way overnight. most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..

    Reply
  • January 29, 2022 at 1:11 am
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    Mrs Jane is legit and her method works like magic I keep on earning every single week with her new strategy,

    Reply
  • January 29, 2022 at 1:11 am
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    Hello,I'm new to Bitcoin trade and l've been making huge losses but recently I see a lot people earning from it. please can someone tell me what I'm doing wrong

    Reply
  • January 29, 2022 at 1:11 am
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    The S19 pro will mine Bitcoin directly and profit at this moment an estimated $1080/month.

    Reply
  • January 29, 2022 at 1:11 am
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    I just withdraw my profit last two days before now. am glad I did invest with them still reinvested and the trade is ongoing

    Reply
  • January 29, 2022 at 1:11 am
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    What a joke! This ETF is just another way for the rich to get richer at the expense of retail investors. If you understand crypto, you know this.

    Reply
  • January 29, 2022 at 1:11 am
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    Money is an issue that everyone has for a better and luxurious life. life was hard for me until I started Bitcoin and I'm now earning $9,500 per week.

    Reply
  • January 29, 2022 at 1:11 am
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    I love Bitcoin!

    Reply
  • January 29, 2022 at 1:11 am
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    there are already spot etfs in canada and 1 for approved in europe, US will be left behind, gensler just gave approval to enrich all the etf middlemen and lose the ability of the little man to gain profits.

    Reply
  • January 29, 2022 at 1:11 am
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    More Fake Media Click Bait!

    Reply
  • January 29, 2022 at 1:11 am
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    NOT Bitcoin, it's a BTC etf. The centralized currency BTC might get an etf.. Bitcoin is a protocol not a Crypto currency!!!

    Reply
  • January 29, 2022 at 1:11 am
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    Expert Mrs Charlotte is legit and her method works like magic I keep on earning every single week with her new strategy

    Reply
  • January 29, 2022 at 1:11 am
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    If futures don't require actual "physical" delivery of Bitcoin, it will end up like paper gold market i.e. Easier to manipulate. One can issue as many futures contract for btc as they want and this effectively lifted the 21mil ceiling for btc supply.

    Reply
  • January 29, 2022 at 1:11 am
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    When I thought I couldn't go on any longer, you gave me the strength I needed to keep moving forward. thank you for always being there for me. you are helper and I'm so grateful to have someone like you in my life,

    Reply
  • January 29, 2022 at 1:11 am
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    When I thought I couldn't go on any longer, you gave me the strength I needed to keep moving forward. thank you for always being there for me. you are helper and I'm so grateful to have someone like you in my life,

    Reply
  • January 29, 2022 at 1:11 am
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    Great content, I've always admired the content and informative nature of this channel mate, you do well. Hell breaks the loss after just a few days of the plunge in the price level of the major cryptocurrencies. Many of us keep forgetting that crypto is obviously exposed to a volatile market environment, although I am 100% sure that crypto would rise in the long run (new investors keep turning to crypto as an investment location) although a seasoned trader would personally agree a trader earns a lot regardless of the price of cryptocurrencies and that a price drop is equally an opportunity to acquire stocks for profitable trading Prof Greg Darrell, I started at 1.5BTC and raised over 6.5BTC in just three weeks using the trading strategy given to me by veteran trader Prof Greg.

    Reply
  • January 29, 2022 at 1:11 am
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    Crypto is the future! That is why many governments are feeling threatened by it and want to regulate it or ban it! It takes power away from the banks and restores it back to the people. And we all know how sinister these banks are… at the time of 1st getting invested I put 70% of my savings in crypto last year in March.. since then I have 5-6x my investments and have watched my fiat savings decline due to inflation here in US..

    Reply
  • January 29, 2022 at 1:11 am
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    Mrs Alice Foster is legit and her method works like magic I keep on earning every single week with her new strategy

    Reply
  • January 29, 2022 at 1:11 am
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    Anyone know at what price is it gonna debut?

    Reply
  • January 29, 2022 at 1:11 am
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    In the future, we can warmup our place with mining coin.

    Reply
  • January 29, 2022 at 1:11 am
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    If the Fed is allowing it, it's a way for the FED to control it.

    Reply
  • January 29, 2022 at 1:11 am
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    <Trade your coins yourself with strategies from Benjamin James Leon, I am already growing my 4.2 btc to 12 btc from September till date>🙌🏻

    Reply
  • January 29, 2022 at 1:11 am
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    Not a fan of futures ETFs, generally futures are destructive, you can easily see what they did to other markets

    Reply
  • January 29, 2022 at 1:11 am
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    Meh. Futures are so boomer. Options is where it's at.

    Reply
  • January 29, 2022 at 1:11 am
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    Congrats to those who bought BTC in the summer at a bargain price. It's double the price now🚀

    Reply
  • January 29, 2022 at 1:11 am
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    <nice analysis! if only we had more people paying attention to the crypto market, the bullish movement on the crypto market these past weeks has been beneficial to both the hodlers and traders alike, but more for the traders. This i can say for fact because i personally being a signal user, i was able to trade and make profit running over 56k usd, although i had guidance from Kelly Patrick, we all can agree it has being a good run for crypto assets. Being a signal user for a while, i can firmly say Kelly’s signals are the real deal, i have made quite a lot using his signals and others as well.

    Reply
  • January 29, 2022 at 1:11 am
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    Hi 👋☺️👋

    Reply
  • January 29, 2022 at 1:11 am
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    Jesus loves ❤️you. Remember tomorrow is not guaranteed, turn to Jesus now before it’s too late. Hell is a place of eternal torment. God bless you ❤️

    Reply
  • January 29, 2022 at 1:11 am
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    Bitcoin is a Ponzi scheme.

    Reply
  • January 29, 2022 at 1:11 am
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    Crypto needs its own regulator

    Reply
  • January 29, 2022 at 1:11 am
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    Since I have been dealing with them why never disappoint me I am so happy dealing with them 💞💞

    Reply

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