First US Bitcoin ETF Provider Requests Exemption From Trading Restrictions

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ProShares, which has launched the Bitcoin futures ETF (BITO), has filed an application with the CME to remove the restrictions on the maximum allowed volume of contracts for purchase, as stated by the CEO of the company Michael Sapir in an interview with Barrons.

The top manager also announced his intention to request permission for BITO to invest in other types of derivative contracts – contracts with “long” maturity, swaps or structured notes.

According to the BITO prospectus, the asset management company “after consultation with the SEC staff” will be able to invest in other products correlated with the price of digital gold. Examples include Riot Blockchain and MicroStrategy shares. Purchases of instruments based on other cryptocurrencies are not excluded.

The interest in the first Bitcoin-ETF was so great that its provider had to switch to buying “distant” futures. This increases the tracking error.

Bloomberg analyst Eric Balchunas has noted the possibility of ProShares to use swaps. With the removal of trade restrictions, the firm will be able to support the further growth of AUM.