ProShares is launching the first Bitcoin futures exchange-traded fund in the US on October 19th under the ticker BITO. The fund will debut on the New York Stock Exchange and tie directly to Bitcoin futures traded on the Chicago Mercantile Exchange. This development comes after the Securities and Exchange Commission (SEC) implied it would no longer prevent ETFs from launching in the US. Furthermore, ProShares CEO Michael Sapir lauded this development as an important milestone for digital currencies in the United States. In Sapir’s own words:
“BITO will continue the legacy of ETFs that provide investors convenient, liquid access to an asset class.”
In addition, the ProShares CEO stated that “2021 will be remembered for the first cryptocurrency-linked ETF.”
The futures ETF that ProShares is offering will only grant investors access to betting on underlying assets. This means that they do not necessarily own them outright. Furthermore, most of these investors will already have a brokerage account and are open to buying stocks and ETFs.
The SEC also approved the ETF request of Volt Crypto Revolution and Tech ETF. The company is linked to BTC-exposure firms, including Tesla and Microstrategy.
Bitcoin, The largest crypto by market cap, crossed the $62K price level on Friday last week and consolidated on those gains this week. As of press time, BTC is changing hands at $62,087.
Image Credits: Pixabay
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