US is about to trade its first Bitcoin futures ETF

Bitcoin has rallied strongly over the past week on hopes of the first Bitcoin futures ETF.

The ProShares Bitcoin Futures ETF, part of the Maryland-based ProFunds Corporation, is expected to begin trading next week, according to an amended filing filed with Proshare authorities on Oct. 15. . This is considered an important milestone for the development of the virtual currency industry in the US.

To date, the Securities and Exchange Commission (SEC) has never formally approved the creation of a Bitcoin futures ETF, and the agency will likely never issue a formal approval statement with the cryptocurrency. this fund. However, Proshare’s announcement suggests that the SEC may not be able to block the listing of a Bitcoin ETF at this time.

NYSE Arca – the leading ETF exchange in the US, late on October 15th confirmed the “approval of the listing” of Proshares Bitcoin ETF. This means that the NYSE Arca will allow investors to trade Bitcoin futures ETFs under federal law without the intervention of the SEC.

Additionally, CNBC quoted a source close to management at the SEC as saying that the Proshares Bitcoin futures ETF will begin trading next week, unless there is a last-minute objection from the SEC.

The Proshare Bitcoin ETF will be traded as a futures contract with the ticker “BITO”. The expected listing date is October 18, and the start of trading is possible at some point during the week.

For years, cryptocurrency advocates have called on the authorities to allow trading of Bitcoin-related ETFs. Proshare’s Bitcoin ETF is expected to attract new classes of investors to the virtual currency sector.

Over the past week, expectations of a Bitcoin ETF listing have pushed the price of this virtual currency up sharply. Bitcoin has rallied more than 10% in the past week and is trading above $61,000 on the afternoon of October 15.

Several companies, such as Invesco and Valkyrie, have applied to list a similar ProShares ETF. However, with the listing of a Bitcoin futures ETF, the virtual currency community will only be seen as a partial winner because the future of an ETF that tracks the spot price of Bitcoin remains uncertain.

An ETF, short for an Exchange Traded Fund, is an open market-traded asset that mimics the volatility of a reference index, such as a stock index, and for all investors. Some companies, like Grayscale, already have products that fluctuate according to the price of Bitcoin but only for investors with large capital or trade on the over-the-counter (OTC) market, where the price of the product is usually not. match the virtual currency price.