Major exchange-traded fund (ETF) providers have filed with the U.S. Securities and Exchange Commission (SEC) to create Bitcoin (TIKER: BTC.EXANTE ETF) products that trade in cryptocurrency derivatives, Cryptocoins News reported.
The commission has received new applications for both REX Bitcoin Strategy ETF and REX Short Bitcoin Strategy ETF, as well as VanEck Vectors Bitcoin Strategy ETF.
Neither firm intends to hold Bitcoins directly; rather, the actively-managed funds will trade futures contracts and other derivatives products to enable investors to profit from the price movements of the flagship cryptocurrency.
SEC had previously denied or refused to review applications from a wide range of fund providers.
Now that CBOE has officially listed Bitcoin futures and LedgerX has launched other derivatives products, many analysts expect that the SEC will begin approving ETFs that trade these products.