Bitcoin and Coinbase Both Rally
Officials from ProShares, which launched the first Bitcoin futures ETF in the United States, are cheering with the opening bell at the New York Stock Exchange on the 19th. [Image source=Reuters Yonhap News]
[Asia Economy New York=Correspondent Baek Jong-min] The United States' first Bitcoin futures exchange-traded fund (ETF) made a successful debut, rising 4% in its first trading session. Thanks to the introduction of the futures ETF, Bitcoin is on the verge of surpassing $65,000. Although U.S. regulatory authorities approved the Bitcoin futures ETF, they warned investors that it is a speculative product.
On the 19th (local time), the ProShares Bitcoin Strategy ETF (BITO), listed on the New York Stock Exchange, closed at $41.89, up 4.1%. BITO even rose to $42.15 shortly after the market opened.
The Wall Street Journal reported that BITO was one of the ETFs with the highest trading volume in history during its first trading session. This indicates strong investor interest.
Michael Sapir, CEO of ProShares, expressed expectations that "investors with stock trading accounts will show great interest in BITO."
Thomas Lee, a Bitcoin expert and partner at Fundstrat Advisors, said that through the ProShares ETF, more individuals can invest in Bitcoin, and the ETF's assets could grow from the current $20 million to as much as $50 billion.
Lee predicted that "BITO will trigger an increase in Bitcoin's price through network effects." He also forecasted that Bitcoin could rise to $168,000.
Along with the launch of BITO, Bitcoin's price is also on the rise. According to CoinMarketCap, Bitcoin is trading at $64,160, up 4.4% compared to 24 hours ago. Bitcoin is getting closer to its all-time high of $65,000 recorded in May.
Buoyed by the rise in BITO and Bitcoin prices, the cryptocurrency exchange Coinbase's stock price also rose 4.1%, surpassing the $300 mark.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), who approved the Bitcoin futures ETF, cautioned against excessive investor enthusiasm.
Chairman Gensler appeared on CNBC and urged, "It (the Bitcoin ETF) is a highly speculative asset, and investors need to recognize that it involves significant volatility and speculation." He pointed out that Bitcoin, Bitcoin futures, and Bitcoin futures ETFs are all speculative products.
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