By Larry Wright
The latest state of Bitcoin is undoubtedly bullish. After seeing 3 months of a depressive state, the flagship cryptocurrency is once again started to reclaim its April ATH. The main driving force behind this strong comeback is that the new Bitcoin ETF approval and launch. After the changes proposed by the SEC, the two biggest bidders were able to submit a suitable application that was accepted by the financial watchdog.
According to the first incident report by CNBC, the new ETF is listed at the New York Stock Exchange under the ticker called BITO. The management firm responsible for this ETF is ProShares which is one of the largest exchange-traded product providers in the USA with years of experience to back them. This Bitcoin ETF traces the price of CMA Bitcoin futures rather than being pegged to Bitcoin directly.
The newly appointed SEC Chief Gary Gensler was recently invited for comment at CNBC on the matter of Bitcoin ETF applications. He told media on the show Squawk on Street that the real reason behind the delay on this matter is not SEC. Gensler claimed that CFTC has been holding back approval for the Bitcoin-related exchange-traded fund and that responsibility has been diverted to SEC this year.
Data from CoinMarketCap indicates that on the first day of trading, BITO has managed to amass a 4% boost. Roundhill Investment CEO Will Hershey explained that BITO notional had reached $700 million. This is a good start and indicates a higher performance potential in comparison to tickers like ARKX and BUZZ. Meanwhile, the price of the flagship cryptocurrency has also gone up by 4%, getting to $64K and inching much closer to the last ATH.
First-Ever Bitcoin ETF will Boost Crypto Market
Anthony Bertolino is the Vice President at iTrustCapital. He recently told the media that the highly anticipated launch of Bitcoin ETF is going to bolster the crypto market activity for a while. He further added that it is best not to depend on the new derivatives for the long term. Many investors who were looking forward towards a Bitcoin ETF hoped for an exchange product that was directly tied to the value of Bitcoin price.
There are also other ways for the investors who want to gain exposure into the flagship crypto indirectly. Companies like PayPal, Square Inc., CashApp, and Coinbase offer equities, institutional-grade funds, and mining stocks. Bertolino told the media that investors now have the option to have Bitcoin ETF positions available 24/7 on the spot market; such a big change can add to the value of the crypto ETFs in the next decade.