ProShares Bitcoin Strategy ETF Rises on Day 1 of Trading
The ProShares Bitcoin Strategy ETF (BITO) – Get the BITCOIN PROSHARES STRATEGY ETF report, the first U.S. exchange-traded fund linked to bitcoin, rose on Tuesday when it debuted on the exchange.
Stocks at last check rose 3.1% to $ 41.22.
ProShares said in a document filed with the Securities and Exchange Commission that the fund “seeks to provide capital appreciation primarily through managed exposure to bitcoin futures.”
It does not invest directly in bitcoin.
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Based in Bethesda, Md., ProShares, which provides specialist exchange-traded products, is the eighth-largest ETF provider by assets, according to ETDB.com.
“BITO will open up bitcoin exposure to a broad segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not wish to go through the hassle and learning curve of establishing another account with a cryptocurrency provider and creating a Bitcoin wallet, or are concerned that these providers are unregulated and subject to security risks, âsaid CEO Michael Sapir in a press release.
Bitcoin recently rose 1.2% to $ 62,572. Bitcoin, the leading cryptocurrency by market cap, hovered near six-month highs above the $ 60,000 mark, ahead of the fund’s listing.
Three more bitcoin ETFs are expected to debut in the trading markets in the coming months.
The SEC does not need to take any formal steps to approve filings.
Under federal law, a request can become effective if the SEC allows a prescribed period to expire and does not request changes or ask the potential issuer to withdraw the file.
Meanwhile, Grayscale Investments, the world’s largest digital currency asset manager, said on Tuesday it had asked the SEC to convert its Grayscale Bitcoin Trust into an exchange-traded fund.
Grayscale Bitcoin Trust was launched in 2013, went public in May 2015 and became an SEC reporting company in January 2020, the company said.
The trust is now the largest bitcoin investment vehicle in the world, holding around 3.44% of all bitcoin in circulation.