USA: The First Bitcoin ETF “Enters” The Market

This week, the first Bitcoin ETF, from ProShares, opens in the US market.

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ETF (an acronym for Exchange Traded Fund) is a stock exchange product that follows an index (stocks, bonds, or commodities), an individual asset (e.g. gold), or a combination of products. In this case, Bitcoin will follow.

As of Friday, October 15, no approval had been given by the U.S. Securities and Exchange Commission for this, however, the filing of the company’s documents shows that it will begin trading within the next week.

Read Also: Why A Bitcoin ETF Can Send Bitcoin To $100K

The first Bitcoin ETF, labeled BITO, will give investors exposure on Bitcoin futures contracts, but not on the spot market.

Its arrival was the main factor that boosted the price of Bitcoin last week. The most popular cryptocurrency rose more than 10%, again surpassing the $61,000 barrier.

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Several companies, including Invesco and Valkyrie, have filed applications for similar ETFs, which are likely to make their appearance on the market in the coming weeks.

It should be remembered that the cryptocurrency market saw its value soar from 16 billion dollars in 2016 to 2.3 trillion dollars in 2021.

This development provokes in some people enthusiasm and the belief that this is an investment, which is gradually establishing itself in the general public and in others terror of a new big bubble.

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