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Bitcoin surges above $64,000 as first crypto-linked ETF lists on NYSE

Bitcoin surges above $64,000 as first crypto-linked ETF lists on NYSE
October 19
21:50 2021

The price of Bitcoin surged, near the all-time high after ProShares Bitcoin Strategy ETF, the first bitcoin-linked exchange-traded fund (ETF) listed on the New York Stock.

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On Tuesday, Bitcoin rose 4.58 percent or $2812, trading $64,241 up 4.22% over the past 24 hours, according to CoinMarketCap.

The price is less than 1 percent from its record of $64,899 as of April 14, 2021.

ProShares Bitcoin listing has been described as a new milestone in cryptocurrency’s journey toward the financial mass market.

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After listing under the ticker BITO, the ETF by ProShares, an investment management firm, gained 4 percent to close at $42 on the first trading day.

The ETF primarily invests in bitcoin futures contracts, betting on the future prices of bitcoin instead of the cryptocurrency.

ProShares, in a statement on Monday, said BITO’s launch would offer investors an opportunity to gain exposure to Bitcoin returns through a brokerage account.

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“BITO can be bought and sold like a stock and eliminates the need for an account at a cryptocurrency exchange and a crypto wallet,” the statement reads.

Michael L. Sapir, ProShares chief executive officer (CEO), said, “We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one.”

“BITO will open up exposure to bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider and creating a bitcoin wallet or are concerned that these providers may be unregulated and subject to security risks.”

In Nigeria, the Central Bank of Nigeria (CBN) has warned citizens against trading in cryptocurrencies. In February, it directed banks to close accounts of persons or entities involved in crypto transactions.

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The apex bank is planning to launch its own digital currency, eNaira.

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