ProShare's First Bitcoin ETF

ProShares filed its Bitcoin Futures ETF application last summer. The SEC had rejected many ETFs based on spot Bitcoin that had been filed since 2013. However, SEC Chairman Gary Gensler signaled the latest approval process, saying that a futures market-linked product would be more likely to receive approval, rather than a spot-based product.

Thereupon, many companies, especially ProShares, VanEck and Wildom Tree, filed similar ETF applications. Among these companies, ProShares received the first approval. It started trading on Tuesday under the code BITO of ProShares' Bitcoin Strategy ETF.

Bitcoin rose to $60,000 after reports that the U.S. Securities and Exchange Commission is preparing to allow exchange-traded funds based on Bitcoin futures contracts.

Proshares' Bitcoin mutual fund reached $264 million in trading volume in the first 20 minutes of its first trading day, testing $42.15 with a premium of over 5 percent. Currently, bitcoin is at $64,000. As it can be understood from here, it can be said that ETF news has a positive effect on the crypto currency markets.

What Is Bitcoin ETF?

Thanks to the Bitcoin ETF, investors will invest in funds of the same value as Bitcoin. As the Bitcoin price rises, these funds will appreciate, and as they fall, they will depreciate. In other words, Bitcoin will be indirectly invested. Thanks to ETFs, risk is minimized.