What the first bitcoin futures exchange-traded fund means for the cryptocurrency industry – CNBC
The value of Bitcoin (BTC) has exceeded the threshold of 66,895 dollars for the first time in his history.
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This week marked a milestone for cryptocurrency as investors started trading the first U.S. bitcoin futures exchange-traded fund, exceeding other ETF launches, and another followed Friday.
These funds invest in bitcoin futures contracts, or agreements to buy or sell the asset later for an agreed-upon price, rather than bitcoin directly.
The new products allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges.
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While the new offerings fall short of what the industry eventually wants — ETFs investing in the currency itself — it didn’t slow excitement for the first launch.
The ProShares Bitcoin Strategy ETF (ticker: BITO) saw one of the biggest first days on record for ETFs, raking in $550 million from crypto-hungry investors. Overall, more than $1.01 billion of shares changed hands, according to Morningstar.
Moreover, the price of bitcoin spiked by more than 4% on Tuesday to $64,206.51, according to Coin Metrics, and soared to an all-time high of $66,900 on Wednesday, passing the previous intraday record of $64,899 from mid-April.