Logo of Phnom Penh Post newspaper Phnom Penh Post - First bitcoin futures ETF rises 5% in trading debut on NYSE

First bitcoin futures ETF rises 5% in trading debut on NYSE

Content image - Phnom Penh Post
A banner for the newly listed ProShares Bitcoin Strategy ETF hangs outside the New York Stock Exchange (NYSE). AFP

First bitcoin futures ETF rises 5% in trading debut on NYSE

Bitcoin took another step closer to mainstream investing on October 19 with the launch of a new security on Wall Street tied to futures of the cryptocurrency.

To mark the occasion, ProShares, leader in exchange-traded funds (ETF), a type of investment linked to an index, rang the opening bell of the New York Stock Exchange (NYSE) on October 19.

The Bitcoin Strategy ETF, trading under the “BITO” ticker, rose 4.9 per cent to $41.94 in its first session, an eagerly-anticipated event in the world of crypto-money that boosted bitcoin futures.

The arrival of the fund helped propel bitcoin back near its all-time high. Near 2030 GMT, the digital currency stood a $64,313, less than $600 short of its April record.

Unlike mutual funds, which are traded only once a day, ETFs can be transacted throughout the trading session, making them more like individual stocks and increasingly popular with everyday investors.

Rather than a direct investment in the digital currency, BITO will invest “primarily in bitcoin futures”, ProShares said.

The US Securities and Exchange Commission (SEC) has repeatedly rejected ETFs linked directly to bitcoin, maintaining that they were subject to market manipulation.

SEC chair Gary Gensler said futures connected to bitcoin also could be volatile, but noted that the ProShares ETF is linked to a futures contract that has been regulated by the Commodities Futures Trading Commission since 2017.

“I think what you have here is a product, it’s been overseen for four years,” Gensler said on CNBC, adding that the SEC has jurisdiction over the ETF under longstanding US law.

“So we have some ability to bring it inside of investor protection [but] it’s still a highly speculative asset class,” he said. “Underneath this, it still has that same aspect of volatility and speculation.”

Other funds are planning ETFs linked to bitcoin including Valkyrie Investments.

MOST VIEWED

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Struggling Battambang artist dreams of staging full-scale gallery exhibition

    Leav Kimchhoth, a 55-year-old artist from Battambang province, is a familiar face to locals and tourists alike on the streets of the riverside in Phnom Penh. The one-armed painter and illustrator often hawks his work near the night market on weekends and public holidays. He

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom

  • PM warns of int’l election interference

    With the national election scheduled to take place in less than two months, Prime Minister Hun Sen has warned foreign nations and their diplomats not to interfere into Cambodia’s domestic affairs. He also hinted that their statements on court verdicts handed down to any