(ProShares) The New York Stock Exchange is set to debut the first bitcoin-linked exchange-traded fund by ProShares on Tuesday.
The ETF is expected to track bitcoin futures and will trade under ticker “BITO.”
ProShares CEO Michael L. Sapir expects the ETF to open up exposure of the world’s largest cryptocurrency to more investors.
The ETF launch is good news for Bitcoin, which was already hovering around 60,000, a slight drop from the weekend high of $62,000 in anticipation of the launch.
Analysts say the launch of the ETF signifies endorsement by the Securities and Exchange Commission on cryptocurrencies. The approval is expected to attract more people and capital into the crypto space.
Some analysts say futures-based ETFs carry challenges of official dilution and position limit and cannot give 100% exposure to the futures markets. There are expectations that a futures-based Bitcoin ETF would pave the wave for the approval of a spot Bitcoin ETF.
The SEC has repeatedly declined approving more than 10 spot Bitcoin ETFs since 2017. Chain Gary Gensler has instead favored alternative investment vehicles such as futures.
BTCUSD is down -1.13%.
