Oct 20, 2021 | Shaoni Ghosh
ProShares, a leading provider of the exchange traded funds (ETFs), a type of investment tied to an index, announced on Monday that it would launch a bitcoin futures related vehicle with the ticker symbol ‘BITO.’
An exchange-traded fund (EFT) is basically a type of investment fund and exchange-traded product, which means they undergo the process of trading on stock exchanges.
(Must Check: Everything About Bitcoin Futures ETFs)
However, ProShares' launch of the ETF varies, if viewed from the lens of all other ETFs. Exempted from any kind of security issues, the launch has turned the previous benchmark upside-down and posed an altogether new market capitalization.
The debut of a new asset on the New York Stock Exchange will push Bitcoin one step ahead towards mainstream trading. The first bitcoin linked exchange traded funds (ETFs) begin trading on Tuesday.
In the world of crypto-money, the debut has been anxiously awaited, with bitcoin recently breaking beyond $62,000, a figure not seen since April.
BITO, according to the firm, may be purchased and traded just like a stock and does not require the attention of potential buyers to have a cryptocurrency exchange account or a crypto wallet.
(Recommended Blog: Cryptocurrency Exchanges)
As reported by NDTV PROFIT, according to ProShares, BITO will trade mainly in bitcoin futures rather than making a direct stake in bitcoin.
Unlike any other mutual funds that are exchanged only once a day, the ETFs can be traded at any time during the trading day.
(Related Reading: What is Futures Trading? How to Trade Futures?)
In a statement, ProShares Chief Executive, Michael Sapir, stated that the firm believes that a plethora of investors have been eagerly anticipating the debut of a bitcoin-linked ETF ensuing years of efforts to develop one.
BITO would provide access to bitcoin to a significant segment of speculators who already have a brokerage account and are satisfied buying stocks and ETFs, but do not want to get through fuss and learn skills of opening a new account with a cryptocurrency supplier and creating a bitcoin wallet, or who are concerned that the suppliers may be unmonitored and may have security issues.
The ProShares fund has not been halted by the Securities and Exchange Committee. The agency, however, in a recent tweet, encouraged investors to seriously evaluate the possible risks and rewards.
The debut of the bitcoin-futures ETFs that came as the red-hot crypto has smashed the $1 trillion market cap benchmark, propelling the larger crypto industry to surpass $2 trillion in revenue.
On Monday, bitcoin surged the same or more as 6% to $62,667.51, barely 4% behind its all-time peak of $64,869.78 recorded in mid-April.