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First US Bitcoin ETF To Debut To This Tuesday

ProShares appears to be on track to launch the world’s first Bitcoin ETF. Such a BTC ETF is an important milestone in the crypto sector as it is a step towards mainstream adoption.

What will a Bitcoin ETF do to the price?

Last Friday, ProShares changed its filing with the US Securities and Exchange Commission to a Bitcoin futures ETF. As a result, a rapid launch of the fund is soon to take place. Todd Rosenbluth, head of ETF and mutual fund research, said the following in a telephone interview.

“The Bitcoin Strategy ETF application appears to indicate that the fund will begin trading Monday or Tuesday. The new ETF will end a years-long battle to get a Bitcoin ETF approved. The first applications already started in 2013, but now 8 years later, it seems to be finally coming to fruition.”

Bitcoin price has soared in anticipation of the ETF. At the time of writing, the price of 1 BTC token is above $61,800. The question now is, of course, whether a sell-the-news moment will arrive after the actual launch, or whether the price will actually shoot up further.

What is a Bitcoin Futures ETF?

Several analysts say that using futures contracts for an ETF instead of using the crypto directly will incur additional costs for the end user.

Futures are a type of derivative that allows investors to gain exposure to an asset without actually owning it. A future is therefore a financial contract between two parties who undertake to trade the underlying on a specific expiry date/delivery date at a predetermined price and paid on the expiry date.

The ProShares ETF will use the ticker code “BITO” and the fund will have an expense ratio of 0.95%, meaning it will cost $9.50 per year for every $1,000 invested.

By the way, ProShares will not be the only one to offer such a Bitcoin futures ETF. Additional approvals are in the pipeline, with fund providers Valkyrie Investments, Invesco and VanEck all holding futures ETFs approved by the SEC.

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