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Bitcoin ETF is set to begin trading on the New York Stock Exchange, a milestone for the industry.

Bitcoin ETF is set to begin trading on the New York Stock Exchange, a milestone for the industry.



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  1. Here come the Bitcoin E.T.F.s

    Bitcoin has been on a tear in recent weeks, approaching record high prices above $60,000, as crypto enthusiasts anticipate history in the making. Tomorrow morning, ProShares will launch a long-awaiting exchange-traded fund on the New York Stock Exchange linked to Bitcoin futures, the firm and the exchange told DealBook. The E.T.F. will give investors exposure to Bitcoin without having to hold the cryptocurrency directly, via any ordinary brokerage account.

    “2021 will be remembered for this milestone,” said Michael Sapir, the C.E.O. of ProShares. Investors who are curious about crypto but hesitant to engage with unregulated crypto exchanges want “convenient access to Bitcoin in a wrapper that has market integrity,” he said. For nearly a decade, crypto entrepreneurs and traditional finance firms have sought permission to launch a Bitcoin E.T.F. in the U.S., but their applications have been delayed or denied by the S.E.C. Many remain pending.

    A Bitcoin futures E.T.F. falls short of what some purists want: a fund that holds crypto directly. Gary Gensler, the S.E.C. chair, recently suggested that the agency might allow crypto E.T.F.s based on futures — bets on Bitcoin’s price fluctuations rather than the underlying crypto itself — that trade on a highly regulated exchange. Approval for the ProShares E.T.F., which is based on Bitcoin futures that trade on the Chicago Mercantile Exchange, won’t be announced by the S.E.C., but the firm’s final prospectus met with no opposition ahead of its effective deadline, and the N.Y.S.E. is readying for launch tomorrow.

    Bitcoin’s true price isn’t easy to quote, Sapir said. There’s no single, reliable market reference and prices vary up to 5 percent from one crypto exchange to another. Many analysts believe that futures prices on the Chicago exchange are the most accurate reflection of Bitcoin market sentiment. From Sapir’s perspective, the futures-linked fund is effectively a Bitcoin E.T.F., even if not tied to spot markets. (It also avoids issues like custody of cryptocurrencies.)

    “This is an exciting step but not the last,” Douglas Yones, the N.Y.S.E.’s head of exchange traded products, told DealBook. He foresees a range of crypto-linked E.T.F.s getting approval, eventually. Tomorrow’s E.T.F. launch is another sign of crypto’s mainstream legitimacy in a year of milestones for the industry, including the crypto exchange Coinbase going public. Critics remain wary of cryptocurrencies, as do regulators, but the digital asset craze of 2021 shows few signs of abating.

  2. Instead of putting money into a retirement fund which then buys shares of another fund which *claims* to buy bitcoins, but is likely doing a rehypothecation scam…

    …individuals should **buy actual Bitcoins** (not alt-coins, GBTC, ETFs, paypal, robinhood, etc), then send their Bitcoins to their own (hardware) wallets.

    “*Not your keys, not your Bitcoins*.” — Antonopoulos

  3. what happens when you buy a share of this etf? does the etf then buy a futures contract from cme? then cme pays you if bitcoin goes up, charges you if bitcoin goes down? if bitcoin goes to a million $, will they still be solvent?

  4. A first step, but this ETF is based on futures contracts which will make it rather inefficient because of the maintenance costs.

    The best thing would be for the SEC to accept at least one ETF based on the Bitcoin spot market by the end of the year.

    The decision on the VanEck ETF which is expected on November 14 will therefore be highly anticipated.

  5. tldr; ProShares will launch an exchange-traded fund on the New York Stock Exchange linked to Bitcoin futures. The fund will give investors exposure to Bitcoin without having to hold the cryptocurrency directly, via any ordinary brokerage account. “2021 will be remembered for this milestone,” said Michael Sapir, the C.E.O of ProShares.

    *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

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