Proshares’ Bitcoin ETF, listed from Tuesday, is based on Bitcoin futures contracts. Cryptocurrency is at its all-time high.
Proshares will be, this Tuesday, the first company to offer an index fund indirectly linked to cryptocurrency listed on the New York Stock Exchange. The US stock market policeman, the Securities and Exchange Commission (SEC), this time did not oppose this ETF (acronym for Exchange traded funds), based on Bitcoin futures contracts. Under the symbol BITO, this financial vehicle offers investors the opportunity to access this new market (and get closer to its returns) by trading Bitcoin futures on the CME in the United States. It is therefore not a question of buying cryptocurrency directly, with all the technical and legal storage constraints that this implies.
Important step taken
Since 2018, the year in which the first authorization request for this type of financial product was filed, the SEC had always opposed fund managers. Its new president, Gary Gensler, changed the game by declaring in favor last August, during a speech on cryptoassets. This step is therefore important for all defenders of these new currencies and will help attract new institutional investors to this market. Other managers are expected to receive approval to launch their ETFs in the days and weeks to come. ” Before investing in a fund that holds bitcoin futures, be sure to weigh the potential risks and rewards. », However, recalled the financial policeman.
However, the SEC has not yet authorized index funds directly indexed to Bitcoin. Bitcoin’s price has risen above $ 60,000 since Friday, approaching its highest level reached in April.