On Friday, October 15, a bitcoin exchange-traded fund (ETF) won approval, becoming the first regulated cryptocurrency investment platform to enter the mainstream in the United States.
ProShares is most likely the company whose ProShares Bitcoin Strategy ETF will begin trading on the NYSE on Monday with the ticker BITO secured for October 28, 2021.
Rather than buying bitcoin directly, investors will now be able to invest in a fund that tracks bitcoin futures. SEC head Gary Gensler has long advocated for bitcoin futures as a regulated alternative to a bitcoin exchange-traded fund. Investors are protected by regulation, according to Gensler, who prefers the futures approach. ETFs are a type of exchange-traded fund that offers investors portfolio diversity without them having to actually own the assets. A bitcoin ETF tracks the price of bitcoin directly, but it is vulnerable to price manipulation, according to Gensler, leaving investors unprotected. Fully regulated Grayscale already provides products that give investors direct access to bitcoin, but they are not open to individual investors.
The SEC has outright rejected bitcoin ETF applications, with 30 more pending clearance. Cameron and Tyler Winklevoss, who launched the Gemini exchange, filed for a bitcoin ETF for the first time in 2013. The establishment of a bitcoin exchange-traded fund that follows futures is a breakthrough toward bridging the traditional financial and cryptocurrency divide. The approval, according to ETFStore president Nate Geraci, will “enable increased education throughout the space” by bringing bitcoin exposure to the public.
Anticipating the ETF clearance, the bitcoin price surpassed £45,000 on Friday. The SEC retains the right to object to the start of trading in ProShares. Ark Invest, Fidelity, Galaxy Digital, Kryptoin, New York Digital Investment Group, Skybridge, Valkyrie Investments, VanEck, and WisdomTree are among the high-profile candidates for a bitcoin.