November 29, 2023

New York: The first US Bitcoin futures-based exchange-traded fund opened on Tuesday, sending Bitcoin to a six-month high, just below its all-time high.

The ProShares Bitcoin Strategy ETF closed at $ 41.94, 2.59% on the first day of trading, with approximately $ 1 billion worth of shares traded on Intercontinental Exchange Inc’s NYSE Arca exchange under Ticker BITO.

The US Securities and Exchange Commission’s ETF green light was considered a cryptocurrency watershed and helped push Bitcoin’s price to nearly $ 64,895.22, the highest level since mid-April.

Bitcoin, the world’s largest cryptocurrency, is notorious for its volatile nature, with the advent of US Bitcoin ETFs (some of which are underway) managed by pension funds and other large investors. Expecting to spur billions of dollars, it will flow into the sector, which has risen about 45% this month.

Dave Nadig, Chief Investment Officer and Research Director of ETF Trends, suggests that block trading at BITO on Tuesday is very low, with small investors and high-frequency trading companies dominating the trading. Said that.

“I think we saw retailers, HFT algorithmic trading trying to find arbitrage trading, and many institutions on the sidelines,” he said.

Nasdaq Inc approved the listing of the Valkyrie Bitcoin Strategy ETF on Friday, and Grayscale, the world’s largest digital currency manager, said it plans to convert the Grayscale Bitcoin Trust into a Spot Bitcoin ETF.

Cryptographic ETFs were launched in Canada and Europe this year amid a surge in interest in digital assets. Invesco ended plans for futures-based ETFs on Monday, but Van Eck and Valkyrie are one of the fund managers pursuing US-listed ETF products.

The SEC has not yet approved the Spot Bitcoin ETF.

Bitcoin futures have been monitored by the Commodity Futures Trading Commission for four years, and ETFs are regulated by the SEC and provide some degree of investor protection, SEC chair Gary Gensler said Tuesday. rice field.

“Still, it’s still a very speculative asset class, and investors need to understand that there is the same volatility and speculation underneath,” he told CNBC.

Bitcoin futures were up 4.85% to $ 64,640.

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US futures-based Bitcoin ETF rises on first day of trading, Bitcoin approaches record

Source link US futures-based Bitcoin ETF rises on first day of trading, Bitcoin approaches record

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