ProShares bitcoin ETF debuts high at NYSE opening

The bitcoin-linked exchanged traded fund, ProShares Bitcoin Strategy ETF, was trading higher on the morning of 19 October but off its opening highs, in its debut on the New York Stock Exchange, marking a milestone for the nascent crypto sector.

The ProShares fund is the first ETF that offers exposure to bitcoin, a virtual asset that has only existed since 2009.

The offering from ProShares comes after a number of proposals to launch a bitcoin ETF that were rejected by the Securities and Exchange Commission.

READ Kraken’s Juthica Chou: Why crypto in mainstream will help shift to options and ETFs

Comments in the summer from SEC Chairman Gary Gensler, suggesting that he might be receptive to approving an ETF that was pegged to futures contracts, paved to way for fund providers to propose a futures-linked ETF.

Gensler has said that futures offer investors greater protections than a fund that is linked to bitcoin directly.

Futures are derivative financial contracts that provide investors exposure to price moves in an underlying asset. However, the value of futures contracts sometimes diverge from the underlying asset, which is one of a number of criticisms of a bitcoin futures ETF.

READ Bitcoin price soars as hype grows over futures ETF

This article was published by Dow Jones Newswires

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