The US is about to trade its first Bitcoin futures ETF

Bitcoin has rallied strongly over the past week on hopes for the first Bitcoin futures ETF …

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

To date, the Securities and Exchange Commission (SEC) has never officially approved the establishment of a Bitcoin futures ETF, and the agency will likely never issue a formal statement of approval for the cryptocurrency. However, Proshare’s announcement shows that SEK currently cannot prevent a Bitcoin ETF from being listed.

NYSE Arca – the leading ETF exchange in the US, confirmed Proshares Bitcoin ETF’s “listing approval” on October 15th.

This means NYSE Arca will allow investors to trade Bitcoin futures ETFs under federal law without the intervention of the Federal Trade Commission. SEK.

In addition, CNBC cited a source close to the management SEK announced that the Proshares Bitcoin Futures ETF will start trading next week, unless there is a last minute objection from SEK.

The Proshare Bitcoin ETF is traded as a futures contract with the ticker “BITO”. The expected listing date is October 18th and trading could start anytime during the week.

For years, proponents of cryptocurrencies have been calling on the authorities to allow Bitcoin-related ETFs to be traded. Proshare’s Bitcoin ETF is expected to attract new investor classes to the virtual currency sector.

Over the past week, expectations of a Bitcoin ETF listing have seen the price of this virtual currency soar. Bitcoin has rebounded more than 10% over the past week and is trading above $ 61,000 by the afternoon of October 15th.

Several companies like Invesco and Valkyrie have filed for listing of a similar ProShares ETF. With the listing of a Bitcoin futures ETF, however, the virtual currency community is only seen as a partial winner, as the future of an ETF that tracks the spot price of Bitcoin remains uncertain.

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

Duc Anh

VnEconomy