ProShares is about to offer the first Bitcoin exchange-traded fund.
SEC has given the green light to Bitcoin futures ETF
On Friday, the Securities and Exchange Commission (SEC) gave the green light to Bitcoin futures ETFs for the first time in history after the regulator’s five commissioners met on the issue. ProShares, which filed for its Bitcoin Strategy ETF last summer, will be the first to launch next week.
The company filed a post-effective amended prospectus on Oct. 15, stating its filing is expected to launch on Monday, Oct. 18. The ticker symbol for the offering is set to be “BITO,” and the fund carries an expense ratio of 0.95%, which means that it will cost $9.50 annually for every $1,000 invested in the ETF.
Bitcoin reacted positively to the recent news
Proponents of a bitcoin ETF believed that the product is more accessible to people interested in Bitcoin than the actual cryptocurrency because it offers investors a regulated alternative to the underlying digital asset. Anticipation for a Bitcoin futures ETF had built after the chairman of SEC, Gary Gensler, said earlier this year that he supported such a structure,
Bitcoin itself has also reacted positively to recent news of the ETF’s approval. The digital asset is currently valued at over $61,000 and is up 7.1% in anticipation of a Bitcoin ETF.