ProShares ETF Hits The Market

BITO will show up on the New York Stock Exchange starting today. It will begin trading at $40.

The Company

ProShares is an American investment management firm that first began dabbling in ETF in 2006. It now owns one of the biggest lineups and has more than $65 billion in assets.

It is now launching the ProShares Bitcoin Strategy ETF, called BITO. This will introduce investors with a brokerage account, interested in buying stocks and ETFs, an easier way to get familiar with Bitcoin.

Stockbrokers, however, are not selling it yet.

Is It the Same As Buying Bitcoin?

Getting ETF doesn’t equal buying Bitcoin.

Dr. Richard M. Smith, a financial risk expert, explained: “The new Bitcoin ETF will not hold any actual Bitcoins but will rather model the price of Bitcoin using futures contracts and other short-term financial instruments. The SEC isn’t ready yet to approve an exchange-traded ETF that holds actual Bitcoins.”

To simplify, an ETF is a tradeable basket of stocks, commodities, bonds, or other securities. The only publicly-traded crypto exchange, Coinbase, is a part of the ARK Fintech Innovation EFT. 

The new ETF is good news for those wondering whether they should invest in cryptocurrency, since Bitcoin and Ether reached all-time highs. However, the prices plummeted today with Bitcoin’s price dropping to below $60,000. An ETF holding bitcoins could be considered less volatile according to experts.   

Statistics also show that Bitcoin has the highest market cap among similar currencies.

Sources

ABOUT AUTHOR

Devoted my whole life to words - reading, writing and trying to be original on social media. Got certified in digital marketing - still not cool enough to be an influencer. Finished a master’s degree focused in Literature, Publishing, Mass Media. Hobbies include traveling, reading and hoping that yoga will be the thing to finally teach me some patience. Would like to take over the world at some point, but that’s an optional dream. Maybe modern tech can help me do that?

Latest from Teodora

What Is SEO Writing Employee Theft Statistics That You Don’t Want to Miss in 2021 15 Disturbing Workplace Violence Statistics for 2021 White-Collar Crime Statistics That You May Not Know About in 2021

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *