FINANCE

The first Bitcoin Futures ETF in the US will start trading next week


The Bitcoin Futures ETF from ProShares will start trading next week, a revised filing of the company indicated late Friday, marking a milestone moment in the development of the crypto industry in the United States.

The Securities and Exchange Commission did not formally approve the creation of the Bitcoin Future ETF until Friday afternoon, and the agency could never formally announce approval for it. But ProShares’ announcement indicates that the agency is unlikely to block the list at this time.

NYSE Arca certified “its approval for listing” on Friday afternoon, meaning the exchange will allow investors to trade approved funds under federal law without SEC intervention. A person familiar with the SEC’s decision clarified that the ETF would be allowed to start trading next week, excluding last-minute complaints from the regulator.

ProShares Bitcoin Strategy ETF, which will publish Bitcoin futures contracts but not spot markets, will trade under the ticker “BITO”.

The proposed date for listing is Monday, according to the new filing, but that does not mean when it will start trading. It could come weeks later. ProShares declined to comment.

Crypto advocates have been pushing for years for regulators to approve an ETF related to Bitcoin, and many are expecting the arrival of a new class of investors in digital currency.

Expectations of ETF listing pushed up the price of Bitcoin last week. The cryptocurrency jumped more than 10% last week and traded above 61 61,000 on Friday afternoon.

Several companies, including Invesco and Valkiri, have applied for similar ETFs that could bring pros to market in the coming weeks.

The approval of Future ETFs for Bitcoin will be seen as a partial victory for some in the crypto community, as the prospect of similar funds tracking the spot-market value of Bitcoin remains unclear.

An ETF, meaning “Exchange Traded Fund”, is an asset that trades like a stock in the open market and is open to regular investors. Some companies, such as Grayscale, have products that already offer exposure to Bitcoin but are only available to eligible wealthy investors or in over-the-counter markets, where stocks often trade at prices that do not match the underlying cryptocurrency.

-NBC’s Tom Frank and Tanaya Machil contributed to this report.

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