Bitcoin ETF Opens for Business in the U.S. Today
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Bitcoin ETF Opens for Business in the U.S. Today

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2 years ago

ProShares says its ETF will be known by the ticker BITO, and will make its debut on the New York Stock Exchange.

Bitcoin ETF Opens for Business in the U.S. Today

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A Bitcoin-linked exchange-traded fund is going to be launched in the U.S. for the first time ever today.

ProShares says its Bitcoin ETF will be known by the ticker BITO, and will make its debut on the New York Stock Exchange.

It comes after the company was given approval by the U.S. Securities and Exchange Commission to launch an ETF that’s based on Bitcoin futures.

This is significant because of how it allows investors to gain exposure to BTC’s returns without owning an account at a crypto exchange.

ProShares CEO Michael Sapir 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. 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 and creating a bitcoin wallet or are concerned that these providers may be unregulated and subject to security risks.”

How Will the Markets React?

Bitcoin is trading at $62,453 as of Tuesday morning — and it’ll be interesting to see whether the ETF’s debut causes the cryptocurrency’s price to edge closer to all-time highs, or sparks a pullback in a classic case of “buy the rumor, sell the news.”

It is worth noting that this ETF does not directly invest in Bitcoin, and regulators aren’t expected to make a decision on approving a physically backed BTC exchange-traded fund until later this year. Sapir added:

“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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