The First SEC-approved Bitcoin futures ETF is all set to make its debut Tuesday, October 19 on the NYSE, ProShares confirms.
A Bitcoin ETF allows investors to gain exposure to Bitcoin without going through the complicated process of actually trading bitcoin. Moreover, investors do not need to worry about the complex storage and security of the crypto asset.
SEC Approves First Bitcoin ETF
SEC approved a Bitcoin Futures ETF after taking so much time. Now, the first bitcoin-linked exchange-traded fund will make its debut officially on Tuesday. The development comes at a time when acceptance for Bitcoin as a currency has been on the rise. In fact, it is now a legal tender in El Salvador.
The much-anticipated ETF from ProShares, which will track the bitcoin futures market, will begin trading Tuesday on the NYSE under the ticker “BITO,” the company confirmed. “We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one,” states ProShares CEO Michael L. Sapir.
“BITO will open up exposure to bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider … or are concerned that these providers may be unregulated and subject to security risks.”ProShares CEO Michael L. Sapir
A Regulatory Milestone
Crypto ETFs are gaining attention globally with the growing popularity of the new asset class, including Bitcoin. The U.S. SEC approval for a Bitcoin Futures ETF is indeed a big regulatory milestone for the still young crypto industry. The crypto community has long struggled to cement crypto’s place in the highly regulated financial world. Four more ETF providers are planning to move forward with trading this month. A second futures-based ETF could come as soon as this week.
Earlier this month, SEC approved the “Volt Crypto Industry Revolution and Tech ETF” providing retail investors exposure to Bitcoin and other crypto holding companies. However, the latest development brings more confidence to the crypto market.
Bitcoin Price Action: The price of bitcoin climbed more than 2% on Monday to over $62,000, according to CoinMarketCap. It would be interesting to see if Bitcoin breaks its ATH of $64,800 this week.