Bitcoin’s first ETF arrives on the New York Stock Exchange on Tuesday
Bitcoin broke through the $ 60,000 price barrier over the weekend for the first time since April. This price movement has been attributed to the expectation that SEC would give green light to Bitcoin futures exchange-traded fund. Monday, this expectation became reality.
Tuesday, ProShares, an exchange trading company, list an ETF that tracks Bitcoin futures contracts on the New York Stock Exchange. It will be listed as “BITO,” the company said.
“BITO will open up bitcoin exposure to a broad segment 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, ”ProShares CEO Michael Sapir said in a statement.
Bitcoin stands at $ 61,910 at the time of writing, near the all-time high of $ 64,800 it hit on April 14.
It has been a tumultuous year for cryptocurrency. The price of Bitcoin started to explode last September, going from just under $ 12,000 at the start of the month to over $ 60,000 in April. A wave of bad news, includingand , caused the price to drop considerably in May. In July, Bitcoin briefly fell below $ 30,000.
Futures are contracts that commit investors to buy or sell a commodity at a certain price on a certain date. For example, you could commit to buying a 1 Bitcoin for $ 100,000 in 5 years. If the price of a Bitcoin on that date is $ 200,000, you would have made money. If the price of a Bitcoin on that date is $ 50,000, you would have lost money.
A futures ETF is particularly different from a standard exchange-traded fund, which Bitcoin enthusiasts have lobbied for. A typical ETF would give investors exposure to the underlying asset, in this case Bitcoin, while a Futures ETF allows investors to speculate on the the price of the asset. Policymakers have said in the past that cryptocurrencies are too prone to fraud and manipulation to be approved for ETFs backed by real Bitcoins.
Either way, integrating cryptocurrencies under the SEC is obviously enough to boost Bitcoin and many other currencies. The current price of Bitcoin is up 8% from this hour last week. Ethereum,, was up 6.5% from a week ago.