Note that ProShares' Bitcoin ETF was originally set to launch on Monday, October 18. However, as the New York Times later learned, interaction with the first US cryptocurrency ETF on the New York Stock Exchange (NYSE) will still start on Tuesday. Accordingly, expect the launch this afternoon.


What is a Bitcoin ETF from ProShares?

ETF stands for “exchange traded fund”. ETF creators buy an asset or multiple assets, ranging from gold to a basket of different corporate stocks – a cannabis stock ETF, for example. The ETF creators then sort of package those assets into one and sell it to investors as a single stock that anyone can trade on the public markets. ETFs are created so that their price matches the price of the underlying asset, or a price index if there is more than one asset.

Bitcoin price rises on expectations of ETF adoption

That said, the exchange-traded fund approved this week differs slightly from the “real Bitcoin ETF” expected by many. ProShares does not buy and represent Bitcoin itself, but rather a set of contracts tied to the future price of the cryptocurrency. According to a recent statement from the company, the underlying asset for their ETF will be BTC futures. We wrote more about the downsides of such an investment product in our article.

What is the difficulty of working with ETFs?

Unlike a regular ETF, whose price will closely track the underlying asset, futures ETFs can trade at different prices. This is partly because professional traders use futures ETFs to arbitrage price movements and speculate on them, but also because the fund must pay to renew monthly contracts, which means extending them.

The upshot is that a ProShares ETF will price roughly the value of Bitcoin, but not to the extent that a traditional ETF would.

How do I buy a Bitcoin ETF?

Anyone with access to the Fidelity or Robinhood brokerage apps will be able to buy the BITO ticker. Trading is due to start today.

Crypto investors following the adoption of the Bitcoin ETF

What kind of fees will the Bitcoin ETF have?

According to Decrypt, the exchange-traded fund has an annual fee of 0.95 per cent. That is, if you buy $1,000 worth of BITO, $9.5 each year will be deducted in fees. That’s more than a lot of ETFs on traditional assets, given that this exchange-traded fund is designed specifically for futures.

Buying cryptocurrencies

Will there be other Bitcoin ETFs?

Yes, at least four more funds are awaiting SEC approval for their ETFs. Their tickers could start trading on the stock exchange as early as this week. However, all of them are also based on Bitcoin futures.

Big companies started buying BTC long before ETFs were adopted

“Traditional” ETFs based on Bitcoin itself are still a long way from being adopted in the US. That said, the fact that the SEC is adopting a futures ETF does not guarantee that a “traditional” ETF will be approved in the future.

Is it worth investing in Bitcoin through an ETF?

That depends on the interests of investors. An ETF will be useful for those who still want to make money from Bitcoin price movements, but don’t want to take on the risks associated with holding the cryptocurrency.

Accordingly, for some investors, buying Bitcoin itself will be many times preferable, as essentially dealing in cryptocurrencies is not just about making money, but about truly owning your assets that no one else can get their hands on. Other big players would be well served by an ETF.


We believe the launch of a Bitcoin ETF - even if it is futures-based - will play a huge role in the development of the digital asset industry in any case. Regulators in all countries will now have more reason to engage with crypto, as the coin-based instrument will now be traded even in the US. Next, we wait for companies willing to use cryptocurrency payments to join the race, and for countries to acquire bitcoins and other coins as their reserves.


Look for even more useful information in our . There we will discuss other important news related to blockchain and decentralisation.