Two years ago, the ProShares Bitcoin Strategy ETF (BITO) became the first US exchange-traded fund (ETF) linked to Bitcoin (BTC). It made history by reaching $1 billion in assets faster than any other ETF.
Today, BITO is worth $1. 4 billion and follows BTC in the futures market.
The future of BITO and other BTC futures ETFs is not known yet, because the US Securities and Exchange Commission (SEC) has a deadline of January 10 to decide on pending applications for spot Bitcoin ETFs.
Bitcoin ETFs will make it cheaper for investors to buy and own Bitcoin. Experts in the industry think that regulators will give the green light to Bitcoin ETFs in early 2024. Will Peck, who leads the digital assets team at WisdomTree, said that if they start selling spot Bitcoin ETFs, it might mean that BTC futures ETFs will no longer be needed.
Some people think that even though there are concerns about spot Bitcoin ETFs, futures ETFs and spot ETFs can still exist together. ProShares CEO Michael Sapir says that investors who don’t like taking risks will consider using products like BITO. His company has not asked permission to sell this product yet.
He supports the idea of futures trading because the Commodity Futures Trading Commission watches over the market and a big financial company manages the funds.
Peck also said that anyone with money to invest can buy Bitcoin and set up a digital wallet. Peck thinks this will reduce the pressure for a sudden increase in demand for spot BTC ETFs.
This is not a recommendation for investing.
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