The cryptocurrency universe celebrated a landmark moment in the history of the asset class as the first Bitcoin futures exchange-traded fund (ETF) started trading on October 19 on the New York Stock Exchange (NYSE), in what several experts see as a major win for the crypto industry both from a regulatory standpoint as well as from an adoption one.
The Proshares Bitcoin-linked ETF started trading on the stock exchanges with the ticker name of BITO. ProShares Bitcoin Strategy ETF was trading 3.2% higher at $41.2 on the NYSE.
Just 20 minutes into its trading premiere, about 6.4 million shares of BITO worth roughly $264 million changed hands, according to data compiled by Bloomberg. Meanwhile, Bitcoin gained as much as 3.1% to trade around $63,274, slightly below its April record highs of just under $65,000, according to Bloomberg.
The Proshares ETF is by no means the first-ever Bitcoin-related ETF to trade in the world as countries like Canada had already launched a Bitcoin ETF in the recent past.
The prospects of the listing of an ETF have excited the cryptocurrency universe with the price of Bitcoin trading 1.3%higher at $63,451, near its all-time high.
This cryptocurrency milestone comes eight years after the first Bitcoin ETF application was filed, and follows the Securities and Exchange Commission’s (SEC) stalling on such approvals.
Unlike Bitcoin ETF applications that the SEC has rejected, the ProShares fund is based on futures contracts and was filed under mutual fund rules that SEC chairman Gary Gensler has said provide “significant investor protections.”
While a far cry from a “pure” Bitcoin-only ETF, the new ETF is giving traders and investors hope that this could pave the way for overall approval. Already, several similar ETFs are being reviewed by the SEC.
Analysts, who track the cryptocurrency market, have suggested that the launch of Bitcoin ETF in the US could trigger further upside in Bitcoin and take it past its all-time made in April 2021.