The first Bitcoin ETF ProShares will be available on October 19
At the end of last week, Bitcoin managed to break through heavy resistance for the first time since April 2021, meeting it at the level of $60,000. This came against the backdrop of news that the crypto community had been expecting for almost a decade the emergence of the first Bitcoin ETF from ProShares, approved by the US SEC.
Following the news of the green light for the Bitcoin ETF, there were rumors of a financial product launch on the NYSE Arca on October 18th. However, the launch will take place a little later on the 19th of this month. This information was confirmed by representatives of the ProShares company. The CEO also noted that “2021 will be remembered as a new milestone for Bitcoin,” as from now on, indecisive investors “will gain access to the main crypto-asset through a shell that ensures market integrity”.
The updated prospectus was submitted by the firm on October 15, and soon its representatives said that the product would soon appear on NYSE Arca under the ticker BITO. The check by the US SEC under the leadership of Gary Gensler took 75 days and, unfortunately, this event did not pass without obvious drawbacks. Most investors expected a Bitcoin ETF pegged to the price of a cryptocurrency, but in return received an ETF pegged to the corresponding BTC contracts. Therefore, many said that this is just a step towards the "real" Bitcoin-ETF spot.
VanEck, Invesco, BlockFi, and Valkyrie remain among those still awaiting the SEC's decision on the BTC-ETF. The deadline for considering the application of the latter ends on October 25. But the SEC could once again seize the opportunity to defer a ruling on Valkyrie's ETFs until December 8, 2021.
Market giant Grayscale said it also plans to join the "ETF trend" if it realizes that the SEC "suits the Bitcoin market." The fund's asset manager emphasized that he will convert its own GBTC Trust into an ETF at the moment when the commission shows great loyalty to the financial instrument.
Meanwhile, investors will be able to purchase BITO tomorrow. To do this, you just need to have a brokerage account, for example, with Robinhood or Fidelity, then select the appropriate ProShares BITO ticker and purchase it. In fact, the algorithm of actions completely repeats the acquisition of shares of any modern corporate giant. The annual commission was 0.95%. Basically, such a high percentage is primarily due to the fact that this Bitcoin-ETF is a futures one.
Whether Valkyrie will become the next player on the market to receive approval from the SEC, we can find out at the end of this month, or in early December, if the department again needs more time to think.
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