Eight years after the first application for a Bitcoin exchange-traded fund (ETF) was filed by the Winklevoss brothers, the first Bitcoin ETF in the United States will begin trading at the New York Stock Exchange (NYSE).
ProShares—a provider of specialized exchange-traded products based in Bethesda, Maryland—filed an application Friday to begin trading of the Bitcoin Strategy Fund Oct. 19, 2021. The fund, which will trade under the ticker BITO, will track Bitcoin (BTCUSD) prices through futures contracts traded at the Chicago Mercantile Exchange (CME).
The first Bitcoin ETF in the United States begins trading on Oct. 19.
The ETF tracks bitcoin prices through futures contracts traded at the CME.
Three other Bitcoin ETFs are expected to make their debut in trading markets in the coming months.
While they offer exposure to a rapidly growing asset class, futures-based Bitcoin ETFs come with several attached caveats.
Bitcoin Futures ETF Opens With Gain and Explosive Trading Volume
After years of delays and setbacks, the first Bitcoin-linked exchange-traded fund in the U.S., the ProShares Bitcoin Strategy ETF, made its debut Tuesday, marking a watershed moment for the crypto industry.
The fund — trading under the ticker BITO — rose as much as 5.4% to $42.15 before paring gains. It has been long-awaited by both the crypto community and investors on Wall Street, many of whom have argued for years that a Bitcoin-centric exchange-traded fund has been overdue. The ProShares fund is based on futures contracts and was filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections.”
Bitcoin nears all-time high as U.S. futures ETF lists
Bitcoin hit a six-month high and was within striking distance of its all-time peak on Tuesday as traders bet the listing of the first bitcoin futures-based U.S. exchange-traded fund could herald investment flows into cryptocurrencies.
The ProShares Bitcoin Strategy ETF on NYSE Arca, owned by Intercontinental Exchange Inc (ICE.N), listed on Tuesday under the ticker BITO.
That followed the end of a 75-day period in which the U.S. Securities and Exchange Commission could object to the listing.
The new ProShares ETF opened at $40.88 and was last at $41.64. ETFs are securities that track an asset and can be bought or sold on a stock exchange. Analysts said the ETF would likely simplify access to cryptocurrencies for retail investors.
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