Bitcoin ETFs Are Back

Back in August, REX ETFs filed for a pair of bitcoin ETFs, something many other firms were doing at the time; however, due to the influx of filings, the SEC asked that the issuers looking to launch bitcoin funds withdraw them until bitcoin futures became available.

Those futures are now trading on the Cboe exchange and set to begin trading on the Chicago Mercantile Exchange next week, and REX refiled for the bitcoin ETF on Friday. The REX Bitcoin Strategy ETF and REX Short Bitcoin Strategy ETF will both be actively managed.

Neither fund will invest in actual bitcoins, but instead will invest in financial instruments that provide exposure to bitcoins, including futures contracts. The funds will use Cayman Islands subsidiaries to hold their derivatives contracts; the subsidiaries can hold up to 25% of each fund’s total assets. Each fund is expected to have notional exposure equal to 100% of its assets.

The filing indicates the funds will list on the Cboe exchange. Cboe Global Markets is the parent company of ETF.com.

VanEck and ProShares also filed for bitcoin funds and are likely to refile as well in the coming weeks.

Contact Heather Bell at [email protected]