社区

At 9:30 a.m. Est on October 19, $ProShares Bitcoin Strategy ETF(BITO)$ launched on the the New York Stock Exchange (NYSE)— the first ever BTC (BTC) related fund available to U.S. investors. While some market participants have questioned the utility of the new product, it will offer people a new way to gain exposure to BTC via brokerage accounts.Shortly after the market closed, more than 23.9 million BITO shares traded, or nearly $1 billion based on the stock's closing price of $41.89, BITO had been the second-most heavily traded fund on record in a watershed moment for the crypto industry.

The Securities and Exchange Commission (SEC) approved the new ETF as futures based, meaning they're derivative, based on the underlying BTC price. That makes them more complex and expensive to own than holding Bitcoin outright. Besides, according to Bloomberg, options on BITO will begin trading on the NYSE Arca Options and NYSE American Options exchanges on Wednesday.

Meanwhile, Bitcoin made a run at its record high of just under $65,000.

The price of bitcoin jumped more than 4% Tuesday to $64,206.51, according to Coin Metrics, about 1% from its all-time high from April 14 of $64,899. Bitcoin futures gained about 4% as well. 

Above all, what should investors pay attention to?

Two key terms the novice investor might need to know are “contango" and "backwardation". The former is a condition where the futures price is above the expected future spot price, while the latter refers to the reverse (the spot price is above the futures price).

Taken together, it means investors will sometimes gain or lose value longer term by owning the futures-based BTC ETF, even while the price of Bitcoin won’t fluctuate the same way.

That means investors in the ETF should expect the price and performance of the shares to differ somewhat from the price of bitcoin itself. This isn’t ideal for existing investors; many of them take a long view on cryptocurrencies and had hoped for an ETF that would track physical bitcoin that investors could buy and hold.

What about cryptocurrency related stocks?

Tuesday, October 19, cryptpcurrency related stocks continued to rise.

$Canaan Inc.(CAN)$ rose 7%, $Marathon Digital Holdings Inc(MARA)$ , $Riot Blockchain, Inc.(RIOT)$ , $Bit Digital, Inc.(BTBT)$ rose more than 1.7%. And $Coinbase Global, Inc.(COIN)$ , which is the largest cryptocurrency exchange in the United States, rose 4.19%.

For most investors, compared with BTC ETF, these related stocks are the better choices.

Are you bullish on the development of BITO?

If you have chance, will you invest stocks or ETF?

Please share your opinions below to join in the discussion.😃😃😃