Investing.com – The first exchange-traded fund (ETF) linked to Bitcoin Futures is to begin trading on Tuesday morning, according to a new report.
The New York Times reported that ProShares Bitcoin Strategy ETF (NYSE:BITO) will launch on Tuesday morning on the New York Stock Exchange, citing the firm and the exchange.
The move is seen as a major milestone for the adoption of cryptocurrencies as it allows investors to gain exposure to digital assets without the need to hold Bitcoin directly.
Hopes that a Bitcoin Futures ETF would be approved have helped the recent price surge in Bitcoin, which has come within $2,000 of April’s all-time high.
On Friday, Bitcoin traded close to $62,900 after the reports that the US Securities and Exchange Commission (SEC) would not object to Bitcoin Futures ETFs being approved for listing. However, the price has since stalled and has struggled to push on and reach April’s all-time high of $64,778.
Other fund managers are now expected to gain approval for Bitcoin futures ETFs within the coming days and weeks, which some analysts have speculated could propel Bitcoin above its all-time high.
“Bitcoin mania has been brewing on social media platforms over the past couple of weeks and while some traders may look to fade the SEC decision, it looks like many are adopting the long-term hold approach,” said OANDA Senior Market Analyst Edward Moya on Friday. “If ProShares and Invesco Ltd. have their respective Bitcoin ETF applications approved […] and initial trading volumes are strong, Bitcoin could have enough momentum to target the $74,500 region.”
However, Moya warns that Bitcoin is always vulnerable to dropping in price, particularly with the regulation picture constantly evolving.
“Bitcoin still has regulatory hurdles and could see scrutiny over the amount of energy consumed as natural gas, coal, and crude prices skyrocket,” Moya added. “Bitcoin is always vulnerable to a 20% plunge and traders should anticipate heightened volatility for the rest of the year.”
At 13:10BST, Bitcoin was trading relatively flat over the last 24 hours near $61,000.
Source: Cryptocurrency - investing.com
