ProShares wants CME to waive position limits on new Bitcoin Futures ETF
The ProShares Bitcoin futures exchange-traded fund (ETF) went live last week, and it is close to hitting the monthly allocated limit.
The ProShares Bitcoin futures exchange-traded fund (ETF) has had an excellent time in the market since it was launched roughly a week ago. The high demand for the Bitcoin futures ETF has seen the investment firm ask for a waiver Chicago Mercantile Exchange (CME).
ProShares, the investment firm behind the first-ever exchange-traded fund (ETF) backed by bitcoin futures, has applied for a waiver with the CME. The firm is seeking to remove the limits put in place for the amount of bitcoin futures a buyer can buy in the new fund.
The ProShares Bitcoin futures ETF has recorded massive growth within a few days of launching. The ETF hit a $1 billion transaction volume two days after it was listed on the New York Stock Exchange (NYSE) Arca.
Starting next month, the CME is set to limit the amount of futures a buyer can acquire in the ProShares Bitcoin futures ETF to 4,000. The amount will drop to 2,000 three days before the expiration of the fund. Since each contract represents 5 BTC, the total ownership to an individual is limited to 20,000 BTC.
ProShares has found a way around this limit by splitting its futures portfolio by keeping half in October and another half in November. According to ProShares’ CEO Michael Sapir, the fund would shift assets into structured notes, swaps or later-dated contracts if the CME doesn’t grant its waiver.
The Bitcoin futures ETF has generated a lot of buzz within the cryptocurrency space in recent days. The approval of the Bitcoin ETF coincided with the leading cryptocurrency reaching a new all-time high above $67k last week.
Bitcoin’s price has dipped since then, and it is currently trading above $62k per coin. Some market participants are still optimistic that BTC could hit the $100k level before the end of the year.