The Strategist

NYSE launches trading in cryptocurrency fund shares for the first time


10/21/2021 - 08:05



The New York Stock Exchange began trading the shares of the first US index fund (ETF), which deals only with cryptocurrencies.



© 2018 QuoteInspector.com
© 2018 QuoteInspector.com
ProShares shares with the ticker symbol BITO jumped 3% immediately after the opening, but then lost some of their momentum and by the middle of the trading session were 1.4% above the opening level. 

The fund does not trade the cryptocurrency itself, but rather bitcoin futures on the CME exchange, that is, contracts for the price of bitcoins. ProShares has about $65 billion in assets under management and is the eighth-largest index fund in the US.

The US media notes that this specificity of the fund's cryptocurrency operations does not put the value of its shares in direct correlation with the bitcoin exchange rate, but is more related to investors' long-term expectations for the cryptocurrency market. 

In recent years, many cryptocurrency ETFs have sought regulatory approval to go public. However, authorities have been slow to make such decisions, fearing increased volatility in the cryptocurrency market, which carries additional risks for investors.

source: ft.com




More
< >

Monday, December 6th 2021 - 06:47 Goldman Sachs cuts US GDP growth forecast for 2022