19 October

ProShares will launch a bitcoin futures exchange-traded fund (ETF) that will start trading on the New York Stock Exchange tomorrow, the company confirmed in an SEC filing on Monday. The fund is linked to bitcoin futures that are traded on the Chicago Mercantile Exchange.

There will be hopes that the debut of a bitcoin ETF on the NYSE will open the floodgates to a stream of similar products winning regulatory approval and accelerating the flow of investments into crypto.

This is an exciting step but not the last.”

See Also: ProShares Bitcoin Futures ETF Trades Tuesday: What You Need to Know
See Also: Former SEC Official Expects More Bitcoin ETF Approvals

The amount of money locked in the bitcoin futures contracts on the global derivatives giant Chicago Mercantile Exchange (CME) surged to record highs on Friday as the SEC greenlighted futures-based exchange-traded funds (ETF) tied to the cryptocurrency.

The dollar value of open interest (OI), or the number of futures contracts traded but not liquidated with an offsetting position, stood at $3.64 billion on Friday, marking a more than doubling for the month. The spread between the CME-based front-month futures contract, also known as premium or basis, and the spot price has surged from an annualized 1% to over 16% this month alongside bitcoin’s 40% rally to $62,000.

U.S. institutions, in particular, have been fueling the rally as evidenced by activity on the CME and the basis flippening on the CME over the retail-led exchanges.”

Global brokerage firm Interactive Brokers Group is bringing crypto trading to Registered Financial Advisors (RIAs) in the U.S. today. Through Paxos Crypto Brokerage, RIAs resident in the U.S. can now trade and custody Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for their clients.

The digital infrastructure that Paxos has built for Interactive Brokers offers U.S.-based RIAs a detailed interface to manage clients’ positions, with customizable reports and real-time data tracking crypto-related stocks, futures, mutual funds, bonds, ETFs, and options.

The global brokerage firm hopes its crypto adoption will spread beyond U.S. borders and is aiming to launch its crypto services to other RIAs around the world. With more on-ramps than ever before, crypto is slowly legitimizing its own existence.

Initially, financial giants like Goldman Sachs and JP Morgan were wary, but Bitcoin’s latest bull run has triggered a change in institutional policy.”

See Also: Société Générale Shopping for Crypto Custodian

Big three credit rating agency Fitch Ratings has warned that stablecoins could impact securities markets.

Fitch Ratings believes stablecoins that approach a systemically important scale could come to play an important role in short-term securities markets, such as commercial paper, while bringing new risks to these markets.

Fitch added that the extent to which stablecoins impact securities will depend on the ‘evolution of regulations affecting the asset class.’

See Also: Rep. Tom Emmer Wants Stablecoins Over CBDCs