Again the biggest issue is how to verify the integrity of the underlying instrument, in this case bitcoin.
What the SEC was after when they denied the winklevoss ETF was a way to confirming that they could audit all bitcoin transactions on the applicable exchanges, and following from that, the identities of all the exchange participants.
Here is the reference index that the CME is using
http://www.cmegroup.com/trading/cf-bitcoin-reference-rate.ht...
and here is the methodology that they are using to calculate the bitcoin price. As far as I can see, they are accepting trade confirms from the following venues....
Bitfinex, Bitstamp, GDAX, itBit, Kraken and OKCoin.com
http://www.cmegroup.com/trading/files/bitcoin-reference-rate...
Interesting that these are cash settled vs being settled in bitcoin. I guess that speaks as to who they expect to use these instruments.
What the SEC was after when they denied the winklevoss ETF was a way to confirming that they could audit all bitcoin transactions on the applicable exchanges, and following from that, the identities of all the exchange participants.
Here is the reference index that the CME is using
http://www.cmegroup.com/trading/cf-bitcoin-reference-rate.ht...
and here is the methodology that they are using to calculate the bitcoin price. As far as I can see, they are accepting trade confirms from the following venues....
Bitfinex, Bitstamp, GDAX, itBit, Kraken and OKCoin.com
http://www.cmegroup.com/trading/files/bitcoin-reference-rate...
Interesting that these are cash settled vs being settled in bitcoin. I guess that speaks as to who they expect to use these instruments.