The largest cryptocurrency by market cap, bitcoin, saw a spike of over 7% on Wednesday. Investors cheered the Proshares Bitcoin Strategy ETF, which launched on the the New York Stock Exchange (NYSE) in the previous session. The first-ever BTC-related fund available to U.S. investors, BITO has helped sweep crypto prices higher in a brisk rally pushing the original cryptocurrency as high as $66,928.67 in early dealings.
BTC Futures ETF will help gain exposure to BTC via brokerage accounts.
While some market participants have questioned the utility of the latest BTC Futures ETF, it will offer people a new way to gain exposure to BTC via brokerage accounts. BITO’s debut was the second-largest ever for an ETF, reflecting massive interest in crypto. However, incoming buyers should be forewarned: the new Bitcoin ETF(s) won’t trade exactly like the market digital coin that tends to fluctuate wildly. The Securities and Exchange Commission (SEC), after a long wait, finally approved the new ETF as futures-based, meaning they’re derivative, based on the underlying BTC price.
Grayscale and NYSE are moving to convert the world’s biggest Bitcoin fund into a spot-based ETF.
Grayscale Investments and the New York Stock Exchange are moving to convert the world’s biggest Bitcoin fund into a spot-based ETF, capitalizing on the market’s embrace of the new fund and a regulatory environment that appears to be shifting in favor of cryptocurrency. “The daily correlation of BITO to spot Bitcoin is going to be almost perfect,” Eric Balchunas, senior ETF analyst at Bloomberg, told Yahoo Finance Live, even if BITO will probably miss the price of Bitcoin by 5 to 10% over the course of a few years, he added.