By Alicia Maher
The introduction of the inaugural Bitcoin-related exchange-traded fund (ETF) was the subject of a CNBC breaking news piece on Tuesday. SEC Chairperson Gary Gensler and ProShares Chief Simeon Hyman spoke about it. The ProShares Bitcoin Tactical ETF, better referred to as BITO, is a Bitcoin derivative contract-based exchange-traded fund. Bob Pisano, a CNBC contributor, reiterated concerns expressed by several traders that the value of Bitcoin derivatives could diverge from the value of Bitcoin spot:
“The commodities market is a more effective venue for trading activity,” Hyman asserted. “The CME stock market generates larger quantities than the biggest cryptocurrency exchange in the United States. We started a comparable financial instrument on July 28th, and since then, the Bitcoin Benchmark Rate went up by 52 %, our Bitcoin investment portfolio has increased by 52 %, and also the Bitcoin Grayscale Trust has increased by 37 %.”
The launch of BITO comes on the heels of statements that additional BTC-linked products, such as Valkyrie’s Bitcoin Vehicle ETF, which will be listed on the Nasdaq in the coming months. Volt Digital Industry Revolution and Tech ETF, an innovative blockchain vehicle that plans to start dealing as soon as possible, is also on the way.
Total Confidence In The Launching Of A BTC Futures-Linked Security
The SEC Chairperson, Gary Gensler, was questioned by Pisano on his previous statements, in which he stated that he does not have similar worries about launching BTC futures-linked securities as he did about releasing a completely connected BTC product. “What we’re attempting to do is introduce new ventures to the investor-protected zone,” said Gensler. “The Commodities Futures Exchange Commission, a sister body of the Securities and Exchange Commission, has been in charge of regulating Bitcoin futures for the past 4 years. You have an organization that has been controlled by a government regulator for the previous four years, and it has also been brought under the authority of the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940.”
In his trust in the investment venture, Hyman noted the background of Bitcoin’s price movements, US financial rules, and the prospect for new opportunities for buyers: “There are already a lot of precedents here. There is great potential. We feel it will perform admirably in the market. We believe that controlled futures sold in a 40-act ETF would provide a lot of people with the possibility to have access to Bitcoin, who may otherwise have remained on the outside.”