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