ProShares Bitcoin Strategy ETF rose about 3% when it started trading on the New York Stock Exchange on Tuesday before retreating lower.
The ETF shares’ price and performance are expected to differ from the Bitcoin price since it tracks futures price instead of the crypto itself.
The fund, which tracks CME Bitcoin futures or contracts, is the first Bitcoin-linked ETF. Investors are still hopeful of an ETF that tracks physical bitcoin.
Securities and Exchange Commission Chair Gary Gensler is optimistic the new product gives a level of investor protection. He still warns of volatility and speculations.
ProShares ranks as the eighth-biggest ETF provider by asset base. Its ETF has an expense ratio of 0.95%.
BITO: NYSE Arca is up +2.42%, BTCUSD is up +0.95%.
