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News Article

Bitcoin Value Skyrockets Before NYSE Premier

By Cinthya Alaniz Salazar | Tue, 10/19/2021 - 16:46

Proshares Bitcoin Strategy ETF (BITO) became the first exchange-traded fund (ETF) featured on the New York stock exchange (NYSE) today, which has granted the cryptocurrency with an aura of legitimacy that has driven its value to new speculative heights after six months of steady growth. The US Securities and Exchange Commission (SEC) first apparent endorsement of cryptocurrencies is expected to drive up investment and encourage other digital currencies to petition for listing.

When trading began this morning the price of world’s most expensive cryptocurrency leaped an additional 3 percent ahead of Monday’s 2 percent gain to US$63,035.04, according to Coin Metrics. Many investors expect demand to continue driving up the price of the currency this week and given the observed reception the currency could quickly approach its all-time high from April when it closed at US$64,899.

According to ProShares, one of the markets largest ETF providers by assets, listing the currency was a strategic move meant “to provide capital appreciation primarily though managed exposure to bitcoin futures contracts.” The fund, which has an expense ratio of 0.95 percent, claims that “it does not invest directly in bitcoin,” according to its company website.

With this move, the cryptocurrency industry has successfully found an entry point into a market from which it had been previously been excluded since 2017, when it began petitioning the SEC. The agency had denied previous petitions arguing that none of the petitioners were able to prove market resistance to manipulation.

Mexico’s central bank had similarly banned the use and trade of cryptocurrency assets, arguing that they were not legal tender in June of this year. However, taking lead from its neighbors, the Mexican Stock Exchange (BMV) has begun seeking the necessary authorizations to list cryptocurrencies for trade even if the currency is not being using domestically, reported MBN.

The SEC’s decision will undoubtedly alter public perception, which in turn is expected to increase investment in cryptocurrencies. Four additional bitcoin futures EFTs are lined up for review in October from Proshares, Valkyrie, Invesco and Van Eck. Still, some experts are concerned about the indirect exposure these listings offer through financial applications like Paypal, Squares CashApp or cypto-related equities like Coinbase

The data used in this article was sourced from:  
US SEC, NYSE, ProShares
Cinthya Alaniz Salazar Cinthya Alaniz Salazar Journalist & Industry Analyst