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The first US Bitcoin ETF will debut on ProShares Trust on Monday or Tuesday

ProShares seemed ready to offer the first Bitcoin
BTCUSD,
-1.78%

Exchange Traded Funds mark a major milestone in the crypto sector as digital assets gain more mainstream adoption.

Submitted funder Amended application In a telephone interview, Todd Rosenbruce, Head of ETFs and Mutual Fund Research at CFRA, announced the Securities and Exchange Commission and Bitcoin Futures ETFs on Friday. ..

The call to the ProShares representative was not returned immediately.

Rosen Bruce speculates that the submission of the Bitcoin Strategic ETF seems to indicate that the fund will roll out on Monday or Tuesday. The new ETF, launched in 2013, ends the long-standing push for approval of Bitcoin ETFs, which have been rejected by the SEC in large numbers.

Expectations for Bitcoin futures ETFs have risen since SEC Chairman Gary Gensler said he supported such a structure earlier this year. He claims to offer more investor protection than ETFs that are directly tied to physical Bitcoin.

Bitcoin
BTCUSD,
-1.78%

In anticipation of Bitcoin ETFs, prices soared in anticipation of ETFs, and the value of the world’s number one cryptocurrency rose 7.1% to over $ 61,000.

Some Bitcoin experts argue that using ETF futures contracts instead of using Bitcoin directly will incur additional costs to the end user. This can be mitigated by using the spot market. Futures are derivatives designed to allow investors to gain exposure to a product without having to own it completely. However, futures contracts roll or expire each month and must be repurchased. This increases the cost of managing the fund and is passed on to the end user.

The ticker symbol for the ProShares offering is set to “BITO” and the fund’s carry-to-cost ratio is 0.95%. That is, every $ 1,000 you invest costs $ 9.50 a year.

In addition to cost, futures do not always accurately track the underlying asset.

Fund providers Valkyrie Investments, Invesco and VanEck may also get more approval as futures peg funds are getting more attention from the SEC.

On Thursday, a retweet from the SEC office on education Link to breaking news for June“Investors need to understand that Bitcoin is a very speculative investment, including gaining exposure through the Bitcoin futures market,” but the ETF is imminent. Was considered to suggest.

The first US Bitcoin ETF will debut on ProShares Trust on Monday or Tuesday

Source link The first US Bitcoin ETF will debut on ProShares Trust on Monday or Tuesday

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