The cryptocurrency world attained a notable milestone after investors in the United States started trading the first Bitcoin (BTC) futures exchange-traded funds. The new funds exceeded other exchange-traded funds being launched recently. Similar to futures traded on stock exchanges, these funds invest in bitcoin futures or contracts to trade in the asset at a future date for a preset price, instead of investing in the cryptocurrency directly.
The new funds allow investors to trade through their regular investment accounts. The best aspect of these funds is that they do away with the security concerns and hassle prevalent in cryptocurrency exchanges. It’s true that the new funds don’t provide exchange-traded funds (ETFs) in Bitcoin, their first launch certainly generated excitement among investors.
Bitcoin price hike
Take the example of the ProShares Bitcoin Strategy ETF. It witnessed one of the biggest records for ETFs during the first days. It could make an impressive $550 million from investors who are gaga over crypto. More than a billion shares were traded overall after the new funds hit the market. The price of Bitcoin (BTC) also hit $64,205.51 on October 19, marking a high of 4 percent. However, the all-time high came the next day when the price of the cryptocurrency touched $66,900.
Organizations in the US have been waiting for the first bitcoin ETF for quite some time now. However, the Securities and Exchange Commission cited the potential for manipulation and fraud and lack of proper regulations as reasons for the delay. However, it’s recommended that investors take out time to learn more about the new funds before pooling their funds in them. Price swings may affect the prices of futures contracts. So, it’s always best to brace up for the unpredictable.