Bitcoin Rides ETF Euphoria to Record High
By Yasin Ebrahim
Investing.com - Bitcoin hit a record-high on Wednesday, riding a wave of optimism following the launch of the first bitcoin futures-based exchange-traded fund that many bet will open the doors to new crypto investors.
BTC/USD rose 5.3% to $66,174, topping its previous record high of $64,778 seen on Apr. 1.
The first Bitcoin-linked exchange-traded fund in the U.S., the ProShares Bitcoin Strategy ETF (NYSE:BITO), rose more nearly 4% in its first day of trading on Tuesday.
The ETF, trading under the ticker "BITO," is widely viewed as a major victory for bitcoin as the listing not only legitimizes the popular crypto as an asset class, but also makes it more accessible to investors.
A bitcoin futures exchange-traded fund doesn’t directly own or hold bitcoin, but rather bitcoin futures. The Securities and Exchange Commission said its decision to green light the BTC futures-based ETF was based on the fact that bitcoin futures, a regulated product, would allow it to have oversight and protect investors.
"Here is a product that's been overseen for four years, by a US federal regulator and CFTC, and that's being wrapped inside of something which is in within our jurisdiction," SEC Chairman Gary Gensler said in an interview with CNBC on Tuesday.
Investors hope, however, that the futures-based ETF will be the first milestone on the road toward an ETF linked to the spot, or underlying bitcoin.
Grayscale Investments confirmed Monday its plan to convert its Bitcoin trust into a bitcoin ETF.
“The NYSE Arca will file a document called the 19b-4 to convert GBTC into an ETF,” Grayscale said in a statement.
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