ProShares Bitcoin ETF To Go Live Tomorrow, Marking Major Milestone For Crypto World

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ProShares Bitcoin ETF To Go Live Tomorrow, Marking Major Milestone For Crypto World
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After a myriad of rejections by the SEC over the past years, it has now been officially confirmed that the first-ever Bitcoin ETF in the United States is set to make its debut this week. 

ProShares’ ETF To Start Trading On NYSE

This week marks a landmark event in the crypto industry as the first long-awaited Bitcoin ETF in the U.S. will debut on the New York Stock Exchange on October 19. ProShares will launch the Bitcoin Futures ETF known as ProShares Bitcoin Strategy ETF under the ticker BITO. The fund is linked to BTC futures that are traded on the Chicago Mercantile Exchange (CME).

The ETF will finally start trading after a 75-day review period by the Securities and Exchange Commission (SEC) captained by Gary Gensler and will provide investors with a new way to purchase the benchmark cryptocurrency on the stock market.

While this ETF will not directly invest in Bitcoin as it will be tied to a slew of contracts tied to the future price of the asset, ProShares CEO Michael L. Sapir noted that the ETF launch represents a watershed moment for cryptocurrency-centric ETFs in the U.S. after years of trying to get such a regulated investment vehicle listed on the stock market.

“BITO will continue the legacy of ETFs that provide investors convenient, liquid access to an asset class. 1993 is remembered for the first equity ETF, 2002 for the first bond ETF, and 2004 for the first gold ETF. 2021 will be remembered for the first cryptocurrency-linked ETF.”

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Sapir also indicated that the Bitcoin ETF will provide Bitcoin exposure to a lot of traditional investors who already have brokerage accounts and are comfortable buying shares and exchange-traded funds, but are not keen on creating completely different accounts to trade cryptocurrencies.

The news of the Bitcoin ETF approval was expected by Bloomberg, which reported last week that the U.S. financial regulator was reviewing the application alongside the filings from other companies including VanEck, Valkyrie, and Invesco. The launch of ProShares’ ETF raises the hopes of these other filings winning the green light from the SEC and opening the door for more mainstream money.

Anticipation of ETF approval pushed the price of the flagship cryptocurrency to levels not seen in almost six months. BTC surged above the $60,000 mark on Friday for the first time since April. Bitcoin was last seen trading at $61,829.43 as of press time, representing a 1.61% gain on the day.