BITO Cryptocurrency was launched yesterday, 19 October and it is already rising in value. A new currency that is disrupting the cryptocurrency market and making its way into our everyday lives. However, before you start thinking it’s just another fad, read on to learn all about BITO Cryptocurrency. We’ll tell you everything you need to know.
What Is BITO Cryptocurrency?
The ProShares Bitcoin Strategy ETF is the first-ever Bitcoin exchange-traded fund in the U.S. The ETF, whose ticker is BITO, holds Bitcoin futures that are traded on the Chicago Mercantile Exchange (CME).
ETFs futures-based funds won’t directly invest in actual bitcoins. Instead, they will deal in bitcoin futures, which trade separately on regulated U.S. exchanges such as CME. With futures, you agree to buy or sell the asset on a specified date in the future at some specified price. You are not directly buying and selling the underlying asset (eg. Bitcoin). At the specified date, you must buy or sell the asset at the agreed-upon price, no matter what the actual price of the asset ends up being that day.
According to Proshares, “BITO will offer access to bitcoin with the convenience, liquidity, and tradability of an ETF,”. Definitely, this is an interesting development in the world of crypto and we have to admit that we are very intrigued by this new cryptocurrency - BITO Cryptocurrency.
Why Is BITO Rising?
So, the BITO Cryptocurrency is already up and it has been rising in value for a while now. BITO share price closed its first day of trading up 4.8% to US$41.94. And it’s up another 0.2% in after-hours trading at the time of writing. According to reports, over 24 million shares of BITO were traded yesterday. The turnover of some US$1 billion in a single day makes BITO the second-most heavily traded fund on its debut day on record.
Before the introduction of the Bitcoin-linked ETF, investors would invest in the cryptocurrency through digital currency exchanges. The risk of hacking, losing private keys to your wallet, security, fear of the unknown, some of the worries that traditional investors have had when investing in Bitcoin.
On the other hand, BITO Cryptocurrency will offer investors a chance to gain exposure to Bitcoin returns through a brokerage account. The new ETF can be bought and sold like stocks without the hassle of holding an account at a cryptocurrency exchange or a crypto wallet. The new Bitcoin ETF has enormous advantages and that's the main reason people are investing in BITO. While many see this as a bubble or a fad, others are starting to invest in BITO. However, we believe that BITO Cryptocurrency will be here to stay.
For more articles like this, take a look at our Crypto page.