A long-awaited Bitcoin futures exchange-traded fund (ETF) started trading on the New York Stock Exchange Tuesday, and it’s a key moment in the ongoing rollout of cryptocurrency. The new ETF is called the ProShares Bitcoin Strategy ETF (BITO), and it joins a narrow field of funds that offer exposure to digital currency.
The new Bitcoin-linked fund gives traders a way to speculate on Bitcoin without having to buy cryptocurrency directly or set up an account with a crypto exchange. Investors can simply buy and sell the fund like they would any other stock trading on the exchange, making it simple to get started.
“By opening up the doors to mainstream investors through Bitcoin ETFs, numerous investors can participate in indirectly investing into Bitcoin but without actually holding the digital asset itself, which can help alleviate the fears that many newcomers have,” says Peter Jensen, CEO of blockchain payments company RocketFuel Blockchain.
But the road to more crypto exchange-traded funds looks bumpy, say experts, even though many fund companies would love to get a cut of the healthy fees that can be charged for running an ETF based on the trendy asset. And this desire comes during a period when fees on traditional assets such as stocks have been slashed as competition for new assets heats up.
Here are the handful of crypto ETFs out now and the funds traders can expect in the future.
Bitcoin ETFs: The funds available now
Bitcoin ETFs can exist in two major types, depending on how