Although the SEC has not announced its approval, a first Bitcoin futures ETF will launch on Tuesday, October 19 on the New York Stock Exchange, a milestone for the cryptocurrency industry.
Historic Moment: An exchange-traded fund (ETF) tied to the largest cryptocurrency will hit Wall Street for the first time.
As reported by the news media Bloomberg and New York Times, the company ProShares, a US provider of investment products on the stock market, will launch a futures ETF of Bitcoin on the New York Stock Exchange (NYSE). This will be the first fund of its kind, linked to cryptocurrency, to be listed on a United States market.
“2021 will be remembered for this milestone“, commented on this Michael Sapir, executive director of ProShares. The ETF will launch on October 19 under the ticker symbol ‘BITO’.
ProShares applied for your strategy ETF Bitcoin last summer. Being based on futures, the ETF will bet on the price fluctuations of Bitcoin rather than the underlying currency itself, and will give investors exposure toThe main asset without having to maintain it directly. As such, the fund is linked to futures of bitcoins traded on the Chicago Mercantile Exchange.
The First Bitcoin ETF on Wall Street
For almost a decade, industry participants have been applying for and waiting for the launch of an ETF of Bitcoin in the US The founders of the exchange Gemini, Tyler and Cameron Winklevoss first sought out a fund of its kind in 2013. However, the country’s Securities and Exchange Commission (SEC) has rejected all previous applications to date.
Although the SEC did not announce the ETF approval of ProShares, The company’s final prospectus met no opposition before its effective deadline, so the NYSE is gearing up for launch tomorrow. In fact, the regulator may not make any announcements about it. In accordance with CoinDesk, the SEC does not You need to formally approve an ETF for it to launch. Under federal law, the SEC can allow an application to take effect, rather than making a formal announcement, the outlet detailed.
A report from CNBC had already anticipated on Friday the arrival of a first ETF of Bitcoin to the American stock market. As we review in DailyBitcoin, a familiar person told that medium that the ETFs proposed by ProShares and Invesco They are scheduled to go public this week after receiving the green light from regulators.
The news comes shortly after the SEC chairman, Gary Gensler, will indicate that funds tied to the cryptocurrency futures market, rather than the underlying asset, were more likely to gain regulatory approval due to the protections it provides to investors.
While some of the advocates of Bitcoin still awaiting approval of an ETF directly backed by cryptocurrency, tomorrow’s fund launch is another sign of overall legitimacy for digital currencies in the US in a landmark year for the industry; including the launch of the exchange Coinbase to the bag.
A promising horizon for crypto in the US
In general, an ETF of Bitcoin it has been considered a product that will be more accessible to traditional investors and people interested in exposing themselves to the asset without holding it directly. It has also been envisioned as a movement that will bring cryptocurrencies to mainstream adoption.
Additionally, several industry experts anticipate that the launch of a futures-based ETF will act as a catalyst for the entry of a handful of similar products that gain approval, eventually including a spot market-based ETF.
About Douglas Yones, Director of Listed Products at the NYSE, expects a number of cryptocurrency-linked ETFs to get approval soon. “This is an exciting step, but not the last”, highlighted the New York Times. It should be noted that, currently, the SEC has yet to evaluate more than 30 other applications for cryptocurrency-linked ETFs.
At the moment, hopes continue to grow that the debut of an ETF of Bitcoin on the NYSE accelerate the flow of investment in the crypto market. Last week, expectations around the first fund of its kind in the US pushed the price of the main cryptocurrency above $ 60,000 for the first time since May. The market saw a general rise amid the rumors.
Could tomorrow’s milestone drive Bitcoin to conquer a new all-time price record?
Hannah Estefanía Pérez’s version / DailyBitcoin
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