BTC Rides ETF Euphoria to Record High

0
49
imageCryptocurrency News3 hours ago (Oct 20, 2021 15:08)

© Reuters.

By Yasin Ebrahim 

Investing.com – Bitcoin hit a record-high on Wednesday, riding a wave of optimism following the launch of the first bitcoin futures-based exchange-traded fund that many bet will open the doors to new crypto investors. 

BTC/USD rose 5.3% to $66,174, topping its previous record high of $64,778 seen on Apr. 1.  

The first Bitcoin-linked exchange-traded fund in the U.S., the ProShares Bitcoin Strategy ETF (NYSE:BITO), rose more nearly 4% in its first day of trading on Tuesday. 

The ETF, trading under the ticker “BITO,” is widely viewed as a major victory for bitcoin as the listing not only legitimizes the popular crypto as an asset class, but also makes it more accessible to investors.

A bitcoin futures exchange-traded fund doesn’t directly own or hold bitcoin, but rather bitcoin futures. The Securities and Exchange Commission said its decision to green light the BTC futures-based ETF was based on the fact that bitcoin futures, a regulated product, would allow it to have oversight and protect investors. 

“Here is a product that’s been overseen for four years, by a US federal regulator and CFTC, and that’s being wrapped inside of something which is in within our jurisdiction,” SEC Chairman Gary Gensler said in an interview with CNBC on Tuesday.    

Investors hope, however, that the futures-based ETF will be the first milestone on the road toward an ETF linked to the spot, or underlying bitcoin.

Grayscale Investments confirmed Monday its plan to convert its  Bitcoin trust into a bitcoin ETF.

“The NYSE Arca will file a document called the 19b-4 to convert GBTC into an ETF,” Grayscale said in a statement.

BTC Rides ETF Euphoria to Record High

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here