The first-ever Bitcoin ETF from ProShares is all set to debut on New York Stock Exchange (NYSE) on Tuesday. The Bitcoin Strategy ETF that tracks the price of the Bitcoin Futures market would be the first of its kind to get the approval of the United States Securities and Exchange Commission (SEC) after years of speculation and rejections. The ticker symbol for the ProShares Bitcoin ETF would be $BITO.
“2021 will be remembered for this milestone, as $BITO would offer “convenient access to Bitcoin in a wrapper that has market integrity,” said Michael Sapir, the C.E.O. of ProShares
*PROSHARES BITCOIN FUTURES ETF WILL LAUNCH ON NYSE TUESDAY: NYT
— *Walter Bloomberg (@DeItaone) October 18, 2021
ProShares became the first firm to get the SEC nod marking the historic movement. 2021 has proven to be the year of Bitcoin as not just retail and institutional investors joined on the Bitcoin bandwagon, but several nations including the likes of El Salvador and Paraguay also legalized the use of Bitcoin in their country.
As for the Bitcoin ETF, SEC chief Gary Gensler has earlier hinted that a Futures market-based ETF has a better chance at getting a regulatory nod than those that hold Bitcoin directly. Following this statement, several asset managers including VanEck, ProShare, Widom Tree, and several others rushed to file for Bitcoin Strategic ETF. ETF analysts now predict that a spot ETF won’t be far behind and the SEC might approve one by the first quarter of 2022.
Bitcoin ETF Opens a New Chapter For Crypto Adoption
The approval of the first Bitcoin ETF in the US opens the gates for compliance focuses investors to invest in digital assets securely. Although Europe and North America have already approved some form of crypto ETFs, many believe the approval by the US would change the future of digital assets as the ETF market is at least 7X bigger in comparison.
While the approval of the first-ever Bitcoin ETF is being rejoiced by many, several Bitcoin proponents believe SEC knowingly approved a Futures ETF rather than a spot one as it gives more power to them to control the market.