ProShares has announced that it will launch the first bitcoin-linked ETF in the United States with the ticker BITO on the New York Stock Exchange on October 19, 2021.
According to a statement released by ProShares, BITO’s launch will mark a milestone for ETFs. This is because this is the first crypto-linked ETF in the U.S. after almost a decade of series of applications by crypto firms and rejections by the United States Securities and Exchange Commission SEC.
The CEO of ProShares, Michael Sapir, said that BITO will give investors who want to play it safe while enjoying the benefits of investing in Bitcoin the opportunity to have exposure to Bitcoin.
“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,” he said.
In the last 24 hours, bitcoin is down by 1.86%, with a current price of $56,333.97 as at the time of writing this. Within 24 hours, bitcoin dropped to $56,177.40 low and $57,819.12 high. The trading volume of bitcoin in the last 24 hours is $1.27B. The current market capitalization of bitcoin is $1.06T. Currently, $18.84M bitcoins is in circulation.
Stats and Image from Coin Desk
Ever since Canada approved a couple of crypto ETFs earlier this year, there has been optimism that the U.S SEC would consider giving ETFs a chance in the country.
Although BITO is tied to Bitcoin futures contracts, rather than directly to the current price of Bitcoin, Sapir said, “a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF.”