Bitcoin ETF enters New York Stock Exchange : The bitcoin digital currency was at $64,313 (approximately Rs 48.3 lakh), down from its April record at $600 (approximately Rs 45,000). With the launch of another new bitcoin futures security on Tuesday, Wall Street Bitcoin has moved one step closer to mainstream investing. To make the occasion even more special, ProShares, the exchange-traded fund leader in a type of investment that is tied to an index, rang the New York Stock Exchange’s opening bell on Tuesday.
Bitcoin ETF enters New York Stock Exchange
The Bitcoin Strategy ETF which was trading under the ticker “BITO” gained 4.9 per cent in its first session and settled near $41.94 (approximately Rs.3,150). It was an event that was eagerly awaited by everyone in the world of cryptocurrency and has boosted the futures of Bitcoin.
The arrival of funds pushed bitcoin even closer to its all-time high. Around 2030 GMT, the digital currency bitcoin was worth $64,313 (about Rs 48.3 lakh), less than $600 (about Rs 45,000) from its April record. Unlike mutual funds, which only trade once a day, ETFs can be traded throughout the trading session, making them more like individual stocks and thus becoming increasingly popular with everyday investors.
ProShares said that instead of investing directly in the digital currency, it would invest BITO “primarily in the bitcoin futures”. The Securities and Exchange Commission has every time rejected ETFs linked directly to bitcoin, saying they can manipulate the market. SEC Chairman Gary Gensler believes futures linked to bitcoin can also be volatile, but the ProShares ETF is tied to a futures contract that has been regulated by the Commodity Futures Trading Commission since 2017.
“I think you have a product here, it’s been maintained for four years,” Gensler said on CNBC. He further noted that the SEC has long had jurisdiction over ETFs under US law.
Other funds, such as Valkyrie Investments, are also planning on ETFs linked to bitcoin.