ProShares, the sponsor of the first-ever exchange-traded fund (ETF) backed by bitcoin futures, has utilized for a waiver to limits the quantity of bitcoin futures a purchaser should buy within the new fund, Barron’s reported.
- Starting with the November front-month contract, the Chicago Mercantile Exchange (CME) will restrict the quantity of futures {that a} purchaser should buy within the new ETF to 4,000, dropping to 2,000 three days earlier than expiration. As every contract represents 5 bitcoin, whole possession is restricted to 20,000 bitcoin.
- To get round this restrict, ProShares has already break up its futures portfolio with half in October and half in November.
- CEO Michael Sapir instructed Barron’s that if the CME doesn’t grant the waiver, ProShares might shift property into later-dated contracts, structured notes or swaps. Barron’s additionally famous that ProShares’ prospectus for the ETF says the fund might additionally spend money on equities with crypto publicity.
