The first exchange-traded Bitcoin futures linked fund in the United States began trading on the New York Stock Exchange and opened at a price of $ 40 per share.
ProShares’ Bitcoin (BTC) Strategy ETF, the first exchange-traded fund to give US investors direct exposure to cryptocurrency futures, opened at $ 40, according to the New York Stock Exchange per BITO share before rising 3.8% to hit $ 41.54 at the time of publication. The crypto fund’s listing on a major exchange follows years of postponed decisions by the Securities and Exchange Commission (SEC), the regulator responsible for releasing the asset.
NYSE Welcomes @ProSharesETF to Celebrate First US Bitcoin-Linked ETF $ BITO https://t.co/0qh0NDS2d4
– NYSE (@NYSE) October 19, 2021
“BITO will open exposure to Bitcoin to a large segment of brokered investors who would like to buy stocks and ETFs, but who don’t want to go through the effort and learning curve of opening another account with a cryptocurrency provider and a Bitcoin wallet or fear.” that these providers are unregulated and subject to security risks, ”said Michael Sapir, CEO of ProShares, on Monday.
The SEC first accepted the registration request for ProShares’ Bitcoin Strategy ETF on the NYSE on October 15, just before it also did the shares of digital asset manager Valkyrie’s BTC futures ETF for a listing on Nasdaq. The institutional asset manager Grayscale also announced on October 18 that it would convert its GBTC Trust into an ETF in the future. The SEC is currently reviewing several crypto ETF applications.
“The ProShares ETF will provide better market access and ease of use for institutional investors looking to enter the cryptocurrency markets,” said Mary Beth Buchanan, global chief legal officer at the blockchain investigation platform Merkle Science. “The latest futures-based ETF is traded on the NYSE and will be more familiar to institutional investors than opening individual trading accounts and trading directly on a spot or futures-based cryptocurrency exchange or crypto trading platform.”
Related: Traders are celebrating Bitcoin’s upcoming ETF, but options markets are less secure
According to data from Cointelegraph Markets Pro, after ProShares’ ETF shares opened, the price of Bitcoin rose 1.2% from $ 62,557 to a five-month high of $ 63,293. This marks a return to the crypto asset, which is hovering above $ 63,000 for the first time since April, when it hit a then high of $ 64,863.