The information comes shortly after the U.S. Securities and Exchange Commission accepted the registration request for ProShares’ Bitcoin ETF on Friday. The first Bitcoin futures-linked ETF is finally launching in the United States after years of effort.
The primary Bitcoin (BTC) futures-linked exchange-traded fund in the USA, ProShares’ Bitcoin Strategy ETF, will start trading on the New York Stock Exchange on Tuesday under the ticker BITO.
ProShares CEO Michael Sapir said the launch marks an essential milestone for cryptocurrency ETFs in the U.S. following a number of years of effort to list one on an exchange:
“BITO will proceed the legacy of ETFs that provide investors convenient, liquid entry to an asset class. 1993 is remembered for the primary equity ETF, 2002 for the first bond ETF, and 2004 for the first gold ETF. 2021 will probably be remembered for the primary cryptocurrency-linked ETF.”
Sapir went on to say that the Bitcoin ETF’s debut on NYSE unlocks massive exposure for buyers in traditional financial markets.
“BITO will open up exposure to Bitcoin to a large segment of buyers who have a brokerage account and are comfortable shopping for shares and ETFs, but don’t want to undergo the effort and learning curve of establishing another account with a cryptocurrency provider and creating a Bitcoin wallet or are concerned that these suppliers could also be unregulated and topic to security risks,” he said.
The information comes shortly after the U.S. Securities and Exchange Commission accepted the registration request for ProShares’ Bitcoin ETF on Friday. On the same day, the SEC also accepted the registration request for shares of Valkyrie’s Bitcoin Strategy ETF for listing on Nasdaq.
On Oct. 5, the SEC additionally approved Volt Crypto Industry Revolution and Tech ETF, a crypto ETF linked to companies with Bitcoin publicity, including firms like MicroStrategy and Tesla.
“Although it is not holding the actual coin, it would not look like a coin-based ETF will be popping out this year both,” Volt Equity CEO Tad Park told. “The next approvals will probably be futures-based ETFs which additionally intention for bitcoin exposure, but they arrive with their own set of problems that isn’t in a coin-based ETF.”.
Amid positive Bitcoin ETF news in the U.S., Bitcoin’s price has surged around 30% over the past 14 days, crossing $60,000 on Friday for the first time since April. At the time of writing, Bitcoin is trading at $61,692, up around 1.3% over the previous 24 hours, according to data from CoinGecko.