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As reported by BusinessInsider, a submission sent to the US Securities and Exchange Commission shows that the stock exchange intends to launch five different ETFs that offer 'bullish and bearish' futures contracts on the Arca stock exchange.

These electronic transfers will be linked to the price of Bitcoin futures listed on the CME and CBOE exchanges, which launched Bitcoin futures contracts in December 2017:

"The value of the target benchmark will be calculated as the last sale price published by the CME or the CBOE or any other US stock exchange that subsequently negotiates bitcoin futures contracts no later than 11 a.m. E.T."

Bull Funds (Bullish Funds)

The three "Bull Funds" are categorized as 1.25X, 1.5X and 2X, offering returns of 100%, 150% and 200% in the given contract.

As indicated in the document sent to the SEC, the funds are not intended to be traded for more than one day and offer percentage returns based on the given contract entered into:

"According to the Registration Statement, the 1.25X Bull Fund, the 1.5X Bull Fund and the 2X Bull Fund seek leveraged daily investment results (before fees and expenses) that correlate positively with 125 percent, 150 percent one hundred or 200 percent of the daily performance of the reference objective. "

However, investors have the possibility of facing the same multipliers in losses, if the market moves against their contracts:

"On the contrary, its value on a given day (before commissions and expenses) should lose approximately 1.25 times, 1.5 times or 2 times, as appropriate, both in percentage and the level of the target benchmark when the benchmark decreases. "

Bear Funds (Bottoms)

As the name suggests, the 'Bears Funds' allow investors to leverage themselves against a decrease in the value of Bitcoin. The two funds offered are 1X and 2X, which offer 100% and 200% gains if the contract reaches its target on the day of the negotiation.

Again, if the reference value increases in value, Bear Funds investors may suffer losses consisting of the multiplier (1X or 2X) they have agreed upon, according to the description of the 2X Bear Fund:

"If the 2X Bear Fund manages to meet its investment objective, its value on a given day should earn approximately twice as much as the target benchmark level when the target benchmark decreases. value on a given day should lose approximately twice as much in a percentage as the level of the target benchmark when the target benchmark increases. "

Keep up with the game

In case the New York Stock Exchange is allowed to launch these ETFs, it will be the third US market to offer Bitcoin futures contracts. The CME and the CBOE have been trading futures since December.

Without wasting time sending your application to the SEC, this movement shows that there is a lot of interest in Bitcoin for Wall Street money.

While some of the likes of Merrill Lynch have denied their financial advisors offer Bitcoin-related investments, the stock exchanges seek to establish several offers.

Once a number of ETFs and trading options have been available for a while, there will be more information on how well these options are being negotiated. Given that knowledge, could we see a change in the sentiment of financial institutions whose clients are looking to enter the cryptocurrency market?

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