The ProShares ETF, which will follow the evolution of the Bitcoin market, will begin trading on Tuesday on the NYSE, under the acronym BITO, The specialized firm indicated this Monday in a statement.
A NYSE spokesperson confirmed to AFP that this first index fund or ETF linked to a cryptocurrency, It will be traded from the opening on Tuesday.
The ETF It will not invest directly in Bitcoin but in futures contracts linked to the cryptocurrency, ProShares said.
In ETFs, investors can buy and sell parts of the fund at all times, unlike other classic instruments of this type that have temporary input and output windows.
ETFs have grown exponentially over 20 years and are valued at more than $ 5 trillion in USA, which represents 70% of the world market for these funds.
“ProShares, one of the main ETF providers, plans to launch (on Tuesday) the first ETF linked to Bitcoin in the US (…), a major stage for ETFs”the fund announced in a statement.
ETFs exposed to Bitcoin exist in Asia, Canada and Brazil, but it is the the first time that one will open in the main financial plaza on the planet.
The stock exchange authorities (SEC) did not oppose the launch of this fund, as they had done so in previous cases.
However, the SEC posted a warning tweet last week, reflecting the doubts and criticism raised by these new digital assets. “Before investing in a fund that has Bitcoin futures, make sure you have weighed the risks and rewards,” the body wrote.
“BITO will offer investors the ability to easily expose themselves to bitcoin returns, via a brokerage account (…) which eliminates the need for an account on a cryptocurrency exchange platform,” added the group.
Driven mainly by this expectation of investors towards this new financial product, the Bitcoin price soared from a month ago gaining 40% and approaching its all-time record reached six months ago of $ 64,870.
“We remember 1993 and the first equity ETF; 2002 and the first bond ETF, and 2004 for the first gold ETF. 2021 will be remembered for the first ETF linked to a cryptocurrency”, ProShares President Michael Sapir celebrated on Monday.
The cryptocurrency market registers a “phenomenal” growth according to the IMF, which assesses in more than 2 trillion dollars the total existing capitalization in cryptocurrencies, the majority in Bitcoin and Ethereum.
Six months ago, the largest US bitcoin exchange platform, Coinbase, went public, which allows the exchange of about 50 cryptocurrencies, and is valued at about 60,000 million dollars.