Bitcoin value is expected to appreciate
The Bitcoin futures ETF will begin trading on Oct. 19 in the United States as the Proshares product won the green light from the Securities and Exchange Commission.
The first Bitcoin ETF in the U.S. is expected to boost the prices of Bitcoin, which rose around 10 percent over the past week to trade at round $62,000.
The ProShares Bitcoin Strategy ETF will trade under the ticker “BITO.” And similar products from such companies as Invesco and Valkyrie are expected to hit the market soon.
Short for Exchange Trade Funds, ETFs track an index as compared to index funds. They are dubbed as low-risk investments because of their diversification, affordable management feeds, and high price visibility.
ETFs have gained ground across the globe thanks to their outstanding performances over the past several years.
However, the Securities and Exchange Commission has refused to approve Bitcoin ETFs.
Things have been different in Canada where the Purpose Bitcoin ETF debuted this February to draw more than $1 billion in just two months.
The country also saw the advent of the world’s first ETF that bets on the plunge of Bitcoin this April.
Horizons ETFs launched the unprecedented product with the ticker BITI. Horizons is the Canadian affiliate of Mirae Asset Global Investments, a South Korean asset management firm.
“The amount of Bitcoin held by exchanges has decreased, which shows that corporations and financial companies are purchasing the cryptocurrency,” SK Investment & Securities analyst Han Dae-hoon said.
“On top of Bitcoin, an Ethereum ETF product is also waiting for the nod of the Securities and Exchange Commission.”