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New milestone: ProShares Bitcoin ETF goes public tomorrow on the New York Stock Exchange

Although the SEC has not announced its approval, a first Bitcoin futures ETF will launch on Tuesday, October 19 on the New York Stock Exchange, a milestone for the cryptocurrency industry.

New milestone: ProShares Bitcoin ETF goes public tomorrow on the New York Stock Exchange

New milestone: ProShares Bitcoin ETF goes public tomorrow on the New York Stock Exchange

Historic moment: An exchange-traded fund (ETF) tied to the largest cryptocurrency will hit Wall Street for the first time.

According to the news outlets Bloomberg and The New York Times, the company ProShares, a US provider of investment products on the stock market, will launch a Bitcoin futures ETF on the New York Stock Exchange (NYSE) tomorrow Tuesday.

This will be the first fund of its kind, linked to cryptocurrency, to be listed on a United States market.

“2021 will be remembered for this milestone,” said Michael Sapir, CEO of ProShares. The ETF will be launched on October 19 under the ticker symbol ‘BITO’.

ProShares applied for its Bitcoin strategy ETF last summer. Being futures-based, the ETF will bet on the price fluctuations of Bitcoin rather than the underlying currency itself, and will give investors exposure to the main asset without having to hold it directly.

As such, the fund is linked to bitcoin futures traded on the Chicago Mercantile Exchange.

For nearly a decade, industry participants have been requesting and waiting for the launch of a Bitcoin ETF in the US The founders of the Gemini exchange, Tyler and Cameron Winklevoss, first sought out a fund of its kind in 2013. However, the country’s Securities and Exchange Commission (SEC) has rejected all previous applications to date.

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Although the SEC did not announce the approval of the ProShares ETF, the company’s final prospectus encountered no opposition before its effective deadline, so the NYSE is preparing for launch tomorrow. In fact, the regulator may not make any announcements about it.

According to CoinDesk, the SEC does not need to formally approve an ETF for it to be launched. Under federal law, the SEC can allow an application to go into effect, rather than making a formal announcement, the outlet detailed.

A CNBC report had already anticipated the arrival of a first Bitcoin ETF on the US stock exchange on Friday. A familiar person told the media that the ETFs proposed by ProShares and Invesco would begin to trade on the stock exchange this week after receiving the green light from regulators.

The news comes shortly after SEC Chairman Gary Gensler indicated that funds tied to the cryptocurrency futures market, rather than the underlying asset, were more likely to gain regulatory approval due to the protections it provides to the investors.

While some of Bitcoin’s advocates are still waiting for the approval of an ETF directly backed by the cryptocurrency, tomorrow’s fund launch is another sign of the overall legitimacy for digital currencies in the US in a landmark year for the industry, including the launch of the Coinbase exchange to the exchange.

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