According to SEC documents, the agency has started proceedings to determine whether to approve a rule change that would allow two ETFs (ProShares Bitcoin ETF and ProShares Short Bitcoin ETF) to list providing retail investors with the ability to indirectly invest in BTC or bet against it through a familiar investment product.
ProShares had first proposed these two funds in September — before CBOE and CME had launched their Bitcoin futures products — and NYSE Arca began seeking SEC approval to list these funds in December. However, as CCN reported, the SEC requested that fund providers withdraw their Bitcoin ETF applications and issued a statement expressing reluctance to approve these products until more investor protections are put in place. Last month, Chris Concannon, president of CBOE, penned a letter to the SEC asking them to consider Bitcoin ETF proposals on a case-by-case basis rather than as a product class. He noted that CBOE has successfully cleared several rounds of Bitcoin futures expirations without incident and said that the Bitcoin markets are rapidly maturing and could soon warrant a regulated ETF.