These first movements reached $ 480 million and placed it among the ETF debuts with the most demand.
Investors are not required to have a cryptocurrency account to buy or sell a share of this Bitcoin futures ETF, ProShares said. “A crowd of investors have been eagerly awaiting the launch of a Bitcoin-linked ETF after years of efforts to launch one,” said Michael Sapir, CEO of the company in a statement, according to Insider.
The world’s first ever index fund (ETF) of futures Bitcoin went up this morning about 3% in its long-awaited Wall Street debut While the most used cryptocurrency exceeded $ 63,000, approaching its all-time high.
ETFs are securities that track an asset and can be bought or sold on a stock exchange. “It can attract flows of investors who prefer the ease of an ETF over the perceived risk of an exchange,” said analyst Martha Reyes, head of research at cryptocurrency exchange Bequant.
Even so, Other analysts have warned that the fund will not invest directly in Bitcoins, but instead in Chicago-traded futures, and therefore the immediate implications for flows may be limited.
But speculators have bet that its launch is a positive sign for spot prices anyway. “This could lead to a more constant buying pressure on CME, which would cause an increase in open interest. This will attract more cash and carry opportunities, which will generate buying pressure in the spot market,” said cryptocurrency analysts of Arcane Research.
The prospect of increased interest in Bitcoin from institutional and retail investors is bolstering the token, whose rise in 2021 dwarfs returns on traditional assets like stocks, bonds and gold.
What is an ETF?
ETFs are positioned in the middle of what represents a common investment fund (CRF) and a traditional listed asset. Specifically, it takes the advantage of diversification from funds by grouping a portfolio into a single instrument and, from stocks, the transparency they offer in their price and liquidity as they are available to operate freely during market hours.
Their objective is to replicate the performance of another asset -or a basket of assets- such as an index, a specific sector or subsector, commodities, currency, countries or regions, among many other options. Now the fact that they “imitate” this behavior implies that unlike FCIs, ETFs are instruments without active management. In favor, they have minimums and very low administration costs.
ETFs are listed in dollars, and other currencies, in the main markets of the world. There are cumulative versions (that reinvest income and dividends), and distribution versions.
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