Golden Finance reports that Eric Balchunas, a senior ETF analyst at Bloomberg, disclosed that ProShares and Bitwise have submitted ETF applications tracking Circle stocks to the U.S. Securities and Exchange Commission (SEC). This move adds new dynamics to the integration of the cryptocurrency market and the traditional financial market.
The ETF applications submitted this time are respectively: ProShares Ultra CRCL ETF and Bitwise CRCL Option Income Strategy ETF. At present, the trading codes of these two ETFs have not been determined yet, and the expected effective date is August 20th.
ProShares has long been renowned in the ETF field and has previously attracted much attention for launching the first ETF linked to Bitcoin. The ProShares Ultra CRCL ETF it has applied for this time is expected to provide investors with leveraged investment opportunities for Circle stocks. Take the Ultra Bloomberg Crude Oil ETF (UCO) previously launched by ProShares as an example. This ETF aims to seek that the daily investment results (before deducting fees and expenses) correspond to twice the daily performance of the Bloomberg Commodity Balanced West Texas Intermediate Crude Oil Index. This leveraged ETF product can help investors obtain greater investment returns with less capital when they are optimistic about the related assets. However, it also comes with higher risks because both gains and losses will be magnified. If the ProShares Ultra CRCL ETF is successfully launched this time, it will also provide investors with a more aggressive investment strategy option for Circle stocks.
The Bitwise CRCL Option Income Strategy ETF submitted by Bitwise this time is unique. Bitwise has previously made achievements in the cryptocurrency field and has submitted applications for ETFs related to Bitcoin, Ethereum, and other options. For instance, the Bitcoin and Ethereum option yield strategy ETFs it plans to launch aim to generate monthly returns by providing investors with a certain exposure to the price fluctuations of digital currencies through a synthetic covered call option strategy. This ETF application for Circle stock also adopts the option income strategy, which means that when investors participate in the investment of Circle stock, in addition to possibly obtaining the income brought by the increase in stock price, they can also obtain additional income through the option strategy. However, this strategy also carries certain risks. The complexity of options may cause investors to suffer losses when they operate improperly or when the market experiences extreme fluctuations.
As an important player in the cryptocurrency field, Circle’s USDC stablecoin has a wide influence in the market. This time, ProShares and Bitwise submitted ETF applications tracking Circle’s stocks, reflecting the continuous rise in institutional investors’ interest in cryptocurrency-related assets. With the continuous development of the cryptocurrency market, an increasing number of traditional financial institutions have begun to explore the integration path with cryptocurrencies. As a convenient investment tool, ETFs have become a bridge connecting the traditional financial market and the cryptocurrency market. Through ETFs, investors can indirectly participate in the investment of cryptocurrency-related assets on traditional securities trading platforms. This not only lowers the investment threshold but also brings more capital inflows and market attention to the cryptocurrency market.
However, the approval of ETF applications has not been smooth sailing. The U.S. Securities and Exchange Commission (SEC) has strict review standards for ETF applications and will comprehensively consider multiple factors such as market risks, investor protection, and product compliance. Previously, numerous applications for cryptocurrency-related ETFs were subject to strict review by the SEC, and some applications were even rejected. There is still considerable uncertainty as to whether the applications of ProShares and Bitwise can smoothly pass the review of the SEC and take effect as scheduled on August 20th. Once the application is approved, it will provide investors with a brand-new investment channel and further promote the popularization and development of cryptocurrency-related assets in traditional financial markets. If the application is rejected, it will also have a certain impact on market expectations, prompting relevant institutions and market participants to re-examine the development strategies and compliance paths of cryptocurrency ETFs.
Subsequently, the market will closely monitor the progress of the SEC’s review of the applications for these two ETFs, as well as its impact on the trend of integration between the cryptocurrency market and the traditional financial market.
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