The exchange traded fund or Exchange Traded Fund (ETF) Bitcoin (BTC) was officially launched by exchange traded products provider, ProShares on Tuesday.
As expected, the launch of the first Bitcoin ETF approved by the United States (US) Securities and Exchange Commission (SEC) has received overwhelming response.
Under the BITO ticker, this Bitcoin ETF saw a 4.85% jump once launched and closed at $ 41.94 for the New York session. Not only that, at the end of the trading session also BITO recorded a trading volume of up to $ 984 million.
For the record, BITO’s performance at the start of the launch has topped several major ETFs such as VanEck’s BUZZ and ARK Invest’s ARKX.
The price of Bitcoin as expected, rocketed to a daily high, $ 64,500 yesterday. This is Bitcoin’s best performance since recording an all -time high (ATH), $ 64,863 on April 14th.
For information, Bitcoin ETF or any ETF based on cryptocurrency is an alternative to direct investment in cryptocurrency assets. Under a set ticker, investors can track the price of a crypto asset.
However crypto ETF investors need to know its performance when compared to crypto assets, it is much different. Through the existence of ETFs, it can indirectly help the growth of the price of Bitcoin while driving investors ’decisions whether to buy or hodl.
Bitcoin -linked ETFs are actually a long wait for the crypto industry. The idea started around 2017, when asset managers started applying for Bitcoin ETF launches but all of them were rejected by the SEC.
Since Gary Gensler was inaugurated as chairman of the SEC, the chances for Bitcoin ETFs to be approved have been getting brighter until the figure itself announced they have no plans to block crypto.
Not only that, the SEC also gave a positive signal regarding the approval of the Bitcoin ETF via a tweet uploaded recently.
At the time of writing, Bitcoin (BTC) is trading at $ 63,933, up 3.44% in 24 hours. The crypto market as a whole showed good movement despite no sudden price changes.
