The first bitcoin-linked exchange-traded fund (ETF) will make its debut tomorrow. 😁 🎉 The much-anticipated ETF from ProShares will track the bitcoin futures market — look out for “BITO” on the NYSE.
“We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one,” ProShares CEO Michael L. Sapir said in a statement.
Bitcoin-specific ETFs will give investors a new way to invest in the crypto market. Futures reduce risks and provide investors with greater exposure and tax benefits. 👏 However, futures ETFs do have some downsides.
ProShares filed for its Bitcoin Strategy ETF over the summer. The fund will track bitcoin futures traded on the Chicago Mercantile Exchange. The futures ETF strategy emerged as an olive branch to a traditional Bitcoin ETF because the SEC isn’t quite ready yet for a regular crypto ETF.
Some are calling the ETF a major historical milestone for bitcoin. However, some skeptics are still unsure if the ETF will boost the value of the largest cryptocurrency. $BTC.X rose 2% today; it was a mild day for the crypto market. 🤷