First Bitcoin futures ETF in the U.S. is set to begin trading next week

ProShares' bitcoin futures ETF will begin trading next week, according to an amended filing filed late Friday by the business, marking a watershed moment in the development of the crypto industry in the United States.

As of Friday afternoon, the Securities and Exchange Commission has not formally approved the launch of a bitcoin futures ETF, and it is possible that the agency will never do so. However, according to the ProShares release, the agency is unlikely to ban the listing at this time.

The NYSE Arca certified "its permission for listing" late Friday afternoon, indicating that the exchange will allow investors to trade the funds as allowed by federal law without SEC interference. According to a source familiar with the SEC's decision-making process, the ETF will be authorised to begin trading next week, barring any last-minute SEC objections.

The ticker "BITO" will be used for the ProShares Bitcoin Strategy ETF, which will provide exposure to bitcoin futures contracts but not the spot market.

According to the new filing, the intended date for the listing is Monday, but that does not necessarily imply it will begin trading on that day. This could happen later this week. ProShares did not respond to a request for comment.

Many expect the launch of an ETF tied to bitcoin to bring in a new class of investors into the digital currency, which crypto enthusiasts have been clamouring for for years.

The anticipation of the ETF's registration appears to have boosted bitcoin's price in the last week. The cryptocurrency has increased by more than 10% in the last week, and was trading for more than $61,000 on Friday afternoon.

Invesco and Valkyrie, for example, have applied to establish comparable ETFs that might follow ProShares into the market in the coming weeks.

Some in the crypto community may consider the approval of a futures ETF for bitcoin as only a partial win, given the prospects for a comparable fund that tracks the spot-market price of bitcoin remains uncertain.

An ETF (short for "exchange traded fund") is a stock-like asset that trades on the open market and is available to regular investors. Some companies, such as Grayscale, already have bitcoin-related products, but they are only available to qualified affluent investors or on over-the-counter marketplaces, where the shares often trade at a discount to the underlying cryptocurrency.

KEY POINTS

- The ProShares Bitcoin Strategy ETF, which will trade under the ticker "BITO," will provide exposure to bitcoin futures contracts but not the spot market.

- As of Friday afternoon, the Securities and Exchange Commission has not formally approved the launch of a bitcoin futures exchange-traded fund (ETF), and the agency may never do so.

- According to the new filing, the intended date for the listing is Monday, but that does not necessarily imply it will begin trading on that day. This could happen later this week.