The first bitcoin ETF finally begins trading

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NS ProShares Bitcoin Strategy ETF It began trading under the ticker symbol “Bito” at $40 per share and quickly rose about 3%. The ProShares Fund is expected to be the first of many ETFs to track Bitcoin Futures to Debut on Wall Street.

VanEck, Invesco, Valkyrie and Galaxy Digital are among several investment firms that have applied with the Securities and Exchange Commission to launch bitcoin ETFs.

Prices held above $63,000 on Tuesday morning, just below $44,000 at the end of September, an increase of over 40%.

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Bitcoin is now within 3% of its all-time high of just under $65,000 earlier this year.

“The approval of the ETF is a pivotal moment for the industry,” Brock Pierce, president of the Bitcoin Foundation, said in a statement to Granthshala Business. “This moment is long-awaited, as many entrepreneurs and firms have sought approval from regulators since early 2013.”

“Today begins an era where retail investors can invest directly in bitcoin via ETFs, and serves as a further validation of bitcoin and cryptocurrencies on a nationwide and global basis,” Pierce said.

Making bitcoin more available to the public

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Bitcoin bulls argue that having an ETF will make it easier for average investors to participate in the crypto market, without having to own bitcoin.

“We believe many investors are eagerly awaiting the launch of a bitcoin-linked ETF,” ProShares CEO Michael Sapir said in a statement on Monday.

“Bito will open up exposure to bitcoin to a larger class of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not wish to go through the hassle and learning curve of setting up another account with a cryptocurrency provider. It is,” said Sapir.

It’s important to note that the ProShares ETF — as well as any others that may receive SEC approval — invests in bitcoin through futures contracts. This means investors buying into the fund will not have any actual bitcoin.

But another asset manager, Grayscale, on Tuesday announced plans to file to change that. grayscale bitcoin trust (GBTC), which was designed primarily for accredited investors with high net worth, in an ETF that would hold bitcoin at its place (or market) value.

Dave LaValle, global head of ETFs at Grayscale Investments, said, “We believe that if regulators are comfortable with ETFs that hold futures for a given asset, then they should also be comfortable with ETFs that match the spot price of the same asset. offer risks.” a press release. “GBTC proves that there is strong investor demand for physically backed bitcoin investment vehicles.”

Still, any type of bitcoin ETF available may attract more new cryptocurrency investors. Some may be living on the sidelines, even though there are now more opportunities to trade cryptocurrencies through firms like coinbase Or Robin Hood.

“The availability of the Bitcoin Futures ETF is a huge step forward for the crypto industry to increase bitcoin awareness and regulation,” Robinhood Crypto Chief Operating Officer Christine Brown said in an email to Granthshala Business. “After the SEC previously rejected many applications for these types of funds, ETFs going live on brokerages opens the door to a new group of investors.”

Credit : www.cnn.com

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