The first Bitcoin ETF in the US launches today

ProShares’ first US Bitcoin ETF will launch on the New York Stock Exchange (NYSE) today, Tuesday.

The first Bitcoin ETF in the US launches today

The Bitcoin Strategy ETF, which tracks the price of the Bitcoin futures market, will be the first fund of its kind to receive SEC approval after years of speculation and denial. The ticker symbol for the ProShares Bitcoin ETF will be $ BITO.

Michael Sapir, CEO, said: “2021 will be remembered for this important milestone as $ BITO will provide“ convenient access to Bitcoin in a wrapper with market integrity ”. Michael Sapir, CEO of ProShares

Among the many ETF providers that have submitted proposals to the US Securities and Exchange Commission (SEC), the ProShares ETF will be the first to hit the market with the ticker BITO as it is set to start trading on NYSE Arca when the market opens the US on Tuesday.

2021 has proven to be the year of Bitcoin as not only private and institutional investors join the Bitcoin pool, but several countries including El Salvador and Paraguay legalize the use of Bitcoin in their country.

As for the Bitcoin ETF, SEC Director Gary Gensler previously suggested that an ETF based on the futures market has a better chance of gaining regulatory approval than those that hold Bitcoin directly. Following this statement, several asset managers including VanEck, ProShare, Widom Tree and several others rushed to apply for the Bitcoin Strategic ETF. ETF analysts are now predicting that a spot ETF will not be long in coming and that the SEC could approve an ETF in the first quarter of 2022.

The first Bitcoin ETF in the US opens a new chapter for the introduction of cryptocurrencies

The approval of the first Bitcoin ETF in the US opens the door to centralized compliance for investors securely investing in digital assets. Although Europe and North America have approved some form of crypto ETF, many believe that US approval will change the future of digital assets.

While the approval of the first Bitcoin ETF is hailed by many, some Bitcoin proponents believe that the SEC deliberately approved a futures ETF instead of a spot fund because it gives investors more power to control the market.

And with the start of ETF trading, traders are not only wondering how the ETF will affect the spot price of Bitcoin, but also who will be using the ETF that has no further direct contact with Bitcoin.

Calling Bitcoin futures that the ETF is backed by “notoriously inefficient capital”, Meltem Demirors, chief strategy officer at crypto asset management firm CoinShares, said it “feels like the SEC is becoming the CFTC (Commodity Futures Trading Commission – the regulator) ridicule the authority responsible for the futures market). “

Others have expressed similar views, with Eugene Ng of the Gemini crypto exchange noting, for example, that retail investors could buy Bitcoin directly on exchanges or access it through ETFs listed outside of the US, while institutions can buy BTC futures on the Chicago Commercial exchange. “I still scratch my head,” said Ng.

However, not everyone shares the opinion that a secured ETF future is unnecessary. Regarding the SEC’s decision to allow ETFs to be approved, Matt Senter, chief technology officer and co-founder of the BTC reward app Lolli, said that a bitcoin ETF cannot or will not hold bitcoin exposure for some people for a variety of reasons their money directly.

“By allowing individuals to invest in Bitcoin through ETFs that track the underlying asset, investors can become familiar with Bitcoin while also considering aspects of the ownership experience that can make crypto difficult for newbies to navigate – like navigating in crypto exchanges, wallets and private keys, ”Senter said in an email comment.

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