Exchange Traded Fund connected with bitcoin will appear on the New York Stock Exchange
The Intercontinental Exchange company expressed its intention to open Exchange Traded Funds or ETF associated with bitcoin. Exchange Traded Funds are a way of collective investment, prevalent mainly in the West. The ETF assets copy the stock indexes and do not have managers unlike the mutual or hedge funds.
Two largest Western exchanges (CBOE and CME in Chicago) launching bitcoin futures allowed creating new exchange products. The network of exchanges Intercontinental Exchange (ICE), which includes the New York Stock Exchange, filed an application to the Securities and Exchange Commission (SEC) to change the rules. If it is approved, ICE will be able to launch two cryptocurrency ETFs. New funds will react to bitcoin price through futures and give investors the corresponding revenue.
It’s worth noting that about six months ago, ICE chairman, Jeffrey Sprecher, said that his company will not offer investors any products related to cryptocurrencies and that Intercontinental Exchange will not be involved with settlements using indexes of not very transparent stock exchanges.
The SEC has not yet commented on its attitude towards bitcoin ETF, although questions about it are being addressed to its press service since the news of bitcoin futures launch. ICE representatives hope that the Commission's response to their application will be positive.