Categories: Business
| On 1 month ago

First Bitcoin Futures ETF Ups 2% on NYSE Trading Debut

By Aswin Kumar

The ProShares Bitcoin Strategic ETF “BITO” rose 3% at the start of trading and last time traded at $ 40.94, up 2.3%. The fund follows a contract that estimates the future price of CME’s Bitcoin futures, or Bitcoin, rather than the crypto itself.

BITO ETF 15M chart on TradeView

Bitcoin, the largest cryptocurrency by market capitalization, rose 3.2% to $ 62,257 before listing the first futures-based exchange-traded fund in the United States, according to CoinDesk.

ETF investors should expect stock prices and performance to differ slightly from the price of Bitcoin itself. This is not ideal for existing investors. Many of them have a long-term view of cryptocurrencies and wanted ETFs that could track the physical Bitcoins that investors could buy and hold.

Both the crypto community and Wall Street investors have long been waiting for Bitcoin ETFs. Many have long argued that regulatory approvals would open up digital currencies to the more common investors. The ProShares fund is based on futures contracts and was submitted under the Trusts Regulations, which “provides significant investor protection,” according to SEC Chairman Gary Gensler.

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“We are really excited to bring BITO, the first Bitcoin-linked ETF, to investors as an important opportunity for them conveniently to invest in Bitcoin in their regular brokerage account,” Simeon Hyman, global investment strategist at ProShares, said on Bloomberg TV.

Global Cryptocurrency chart on CoinMarketCap

Also, the global cryptocurrency market cap breaks $2.5 trillion first time in a while after China’s crackdown on cryptocurrencies went live.

Meanwhile, Grayscale Investments LLC and the New York Stock Exchange have filed an application to convert the GBTC card, the world’s largest Bitcoin fund, into an ETF, seeking approval from regulators.

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Aswin Kumar

A creative science nerd! Buy me a coffee: buymeacoffee.com/aswinkumar

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