Bitcoin futures ETF are finally going to be traded in the United States. After several nos and delays, the U.S. Securities and Exchange Commission has tacitly approved for the first-ever Bitcoin futures ETF to begin trading on Monday.
The Bitcoin futures, from the ProShares Bitcoin Strategy ETF, will trade under the ticker “BITO.” The ETF aims to exert exposure to Bitcoin futures contracts to the wider investor base.
SEC’s Tacit Approval
Although SEC has not given official approval, five of its regulators met on the issue on Friday. The five did not say anything to halt the trading of the ProShares Bitcoin Strategy ETF.
Despite SEC’s lack of official approval, the law is in favor of ProShares’ trading of Bitcoin futures ETF. The directive for such a case is that if 75 days pass since the initial filing, and SEC has presented no dissent, the product in question is clear to list.
ProShares applied for its Bitcoin trading in the summer. The firm proceeded to file a post-effective amended prospectus on October 15th, which specified that its previous filing would launch on October 18. However, a disclaimer that traders should take note of is that although the launch is on Monday, trading may not begin immediately.
ETFs are used to follow the price of stocks, commodities, or other assets. An introduction of a “pure” Bitcoin ETF in the market should closely track the price of Bitcoin. It will provide an avenue for investors who shy away from exchanges to buy and sell Bitcoin on the stock market during regular market hours.
Bitcoin Price Surges Amidst the Impending Listing
The NYSE Arca confirmed on Friday that it will be listing the ProShares Bitcoin Strategy ETF for investors to trade under federal law without the intervention of the SEC. The excitement over the listing is seen in the price of the target cryptocurrency.
Bitcoin’s price was trading above $61,000 on Friday afternoon. Throughout the week, the leading cryptocurrency experienced a price surge of over 10%. Traders are anticipating a further price surge as the listing date draws near.
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