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• The ProShares Bitcoin futures ETF will start trading on NYSE from Tuesday
• A futures-based ETF won't allow investors to trade Bitcoin directly but is still considered a significant regulatory feat for the crypto industry
• Three other Bitcoin ETFs are expected to launch this month
The first bitcoin-linked exchange-traded fund fromFirst Bitcoin futures ETF in U.S. to debut Tuesday on NYSE, ProShares says ProShares will make its debut on Tuesday. The much-anticipated ETF will track the bitcoin futures market and will be traded on the New York Stock Exchange under the ticker BITO, the company said.
We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one, ProShares CEO Michael Sapir said on Monday. 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.
Bitcoin jumped about 2% to $62,000 on Monday, hovering to six-months high in anticipation of the ETF.
Anticipation for Bitcoin ETF
Bitcoin futures ETFs are greeted as a big regulatory win for the nascent digital currency industry. Four more ETF providers are expected to move forward with trading this month.
Since 2017 at least 10 asset managers have sought approval to launch spot bitcoin ETFs, but all got rejected by the Securities and Exchange Commission (SEC), then headed by Jay Clayton.
The current SEC Chair Gary Gensler in August this year said he would favor investment vehicles that include futures, and a rush of bitcoin futures ETF applications followed.
Other than ProShares, there are three more Bitcoin futures ETFs lined up for review in October, from Valkyrie, Invesco and Van Eck.
ProShares completed a 75-day period since the fund manager filed plans, and others will also be allowed to move forward if the SEC doesn't intervene within the 75-day period.
The future investment
Crypto investors are anticipating the approval of the first Bitcoin ETF in the U.S. will trigger an influx of money from institutional investors who were not investing in digital coins till now.
The growing worries for inflation have also increased appetite for bitcoin, which is in limited supply, whereas central banks are issuing ample amount of currencies in recent years to stimulate their economies.
Bitcoin ETFs would give investors a financial vehicle through which they can trade Bitcoin itself, rather than derivatives tied to it.
However, investing in a futures-based ETF would not be the same thing as investing directly in bitcoin. A futures contract is an agreement to trade an asset at a future date at an agreed-upon price.
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