First bitcoin futures ETF soars in trading debut
By Shubhangi on Oct 20, 2021 | 03:30 AM IST
• ProShares Bitcoin Strategy ETF rose almost 5% on Tuesday.
• The ETF tracks CME bitcoin futures rather than the digital currency itself.
The first U.S. bitcoin-linked exchange-traded fund rose 4.8% in its trading debut on Tuesday, closing at $41.94.
The ProShares Bitcoin Strategy ETF, which goes by the ticker “BITO”, tracks CME bitcoin futures rather than the digital currency itself.
On Tuesday, bitcoin jumped more than 4% to $64,206.51, according to Coin Metrics, while bitcoin futures gained about 4%. Bitcoin has jumped 48% since September, due to the expected launch by ProShares ETF and rivals.
Also Read: First Bitcoin futures ETF in U.S. to debut Tuesday on NYSE, ProShares says
SEC hindrance
According to ETDB.com, ProShares is the eighth-biggest ETF provider by assets and is known for its funds to study certain indexes.
A bitcoin-related ETF has been long awaited as Securities and Exchange Commission kept rejecting proposals by asset managers for bitcoin ETFs. The main concern of SEC was that investors might become the victim of fraud or manipulation as bitcoin trading is not transparent.
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Picture Credits: Associated Press