After years of waiting, the time has finally come. There is a very good chance that next Monday the first bitcoin (BTC) exchange-traded fund (ETF), or publicly traded fund, of ProShares will be launched on the US stock exchange.
Implications
This development was received very warmly by the crypto community and following the news, the price of bitcoin even almost reached a new level. all-time high. Listed bitcoin funds on the US stock exchange are increasing exposure to the cryptocurrency more readily available to a large number of investors.
The professional traders on the exchange in particular will be rubbing their hands at the future prospects of bitcoin futures ETFs. They will be able to arbitrage to earn a lot of money quickly.
Also, traditional investors who previously had some doubts about a bitcoin be tempted by the convenience of investing in a publicly traded fund available on the US stock exchange.
That does not mean that retail investors can currently get exposure to bitcoin just as easily as buying a stock. The approved bitcoin futures ETFs are quite complicated investment products. More user-friendly stock funds will probably have to wait a while.
However, not everyone will be thrilled with the launch of bitcoin ETFs. Grayscale is one of the parties that will most likely view recent developments with suspicion. Grayscale is a company that has long been offering investment products that indirectly generate exposure to bitcoin.
The so-called Grayscale Bitcoin Trust Fund (GBTC) becomes almost irrelevant with the advent of bitcoin futures ETFs. It will simply be more attractive for investors to invest in the new ETFs than to invest in Grayscale’s GBTC fund.
There it is! Bloomberg’s data team in the process of adding the ProShares Bitcoin Strategy ETF to the terminal. Ticker will be $ BITO. 95 bps — less than half $ GBTC‘s 2% fee. This thing is going live next week. Either Monday or Tuesday. pic.twitter.com/Lil4eHVdmr
— James Seyffart (@JSeyff) October 15, 2021
Nevertheless, the recent ruling by the US Securities and Exchange Commission (SEC) of course very positive for the world of cryptocurrencies. It shows that the SEC is willing to take big steps and no longer ignore the crypto industry.
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