Bitcoin hit a record level of $66K on ETF news.
The likelihood the ETF’s listing appeared to push up the price of bitcoin over the past week.
They also are not very good at tracking spot prices (read: Bitcoin & Blockchain ETFs: What Investors Should Know). Futures-based products are however not as efficient as physically-based products in general since derivatives add another layer of complexity, with the need to rollover. SEC Chair Gary Gensler indicated his preference for futures tracking ETFs, created under the existing 1940 Investment Company Act, which provide considerable investor protection. The SEC was seemingly looking for more proof of safety in this trade (read: Bitcoin Matches SPY ETF in 1H: What Lies in 2H of 2021?). But none received the SEC nod up until October 2021. There have been repeated attempts in the past by ETF issuers to bring an exchange-traded-product on the cryptocurrency. Despite the humongous success witnessed lately, regulatory concerns have always been a hurdle for bitcoin. These are great success from the issuers’ point of view. The fund (BTFD) started trading from Oct 22. Plus, Valkyrie Investments’s bitcoin futures exchange-traded fund also won the green signal of the U.S. VanEck will join ProShares in launching a bitcoin futures exchange-traded fund (XBTF). ProShares Bitcoin Strategy ETF BITO, the first US listed bitcoin ETF has started trading on Oct 19, making the world’s biggest cryptocurrency available in a tax-efficient wrapper to investors via any brokerage account. October 2021 will be long-remembered in the investing world for the launch of bitcoin futures ETFs.
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