The amazing rise of cryptocurrencies, especially interest in Bitcoin, is captivating. The cryptocurrency market has grown by leaps and bounds as most other investment destinations have struggled. That sentiment gradually changed and investors showed courage when depositing money in investment instruments. This allowed the cryptocurrency to flourish. The next step in this will come in the form of cryptocurrency-linked exchange-traded funds, or ETFs, a type of security that tracks an index, sector, or commodity, but can be bought or sold on a stock exchange. the way a common stock can be.
In a pivotal moment for crypto, the first Bitcoin ETF in the US began trading on the New York Stock Exchange (NYSE) in October. The ProShares Bitcoin Strategy ETF is codenamed BITO.
Here are a few things to know about BITO:
The bitcoin-linked ETF began trading on the NYSE ARCA exchange on October 19 of this year.
– Investors can buy BITO shares directly through the fund company or through a broker.
– Since ETFs are investment securities that are traded on an exchange like stocks, the BITO ETF provides simple, indirect access to this cryptocurrency for retail investors. To track the price of Bitcoin, BITO buys Bitcoin futures contracts, which are then securitized into a tradable ETF.
But investors should expect the price and performance of Bitcoin futures to vary from the current “spot” price of Bitcoin.
– BITO is the first Bitcoin ETF to be listed on a US stock exchange, but the previous ETF has been launched in Canada and Europe.
– To trade in a Bitcoin ETF, an investor must first choose a financial institution that they want to trade with. Then they should open a trading account, add money to it.
An important aspect of futures trading is thorough research on their options. Finally, place the trade.
