World’s First Bitcoin Futures ETF to Start Trading Tonight on NYSE

World’s largest crypto currency Bitcoin continues its earlier climb to all time high after asset management firm Proshares got approval from the Securities and Exchange Council (SEC) to launch bitcoin futures exchange-traded fund (ETF) on the New York Stock Exchange (NYSE).

The fund is linked to bitcoin futures that are traded on the Chicago Mercantile Exchange.

It all started last week when Bloomberg reported the SEC is not likely not to block application for bitcoin futures ETF. Following the news, the SEC on Friday approved the world’s first ETF on bitcoin futures.

Michael Sapir, chief executive officer of Proshares in an interview with Bloomberg told “We plan to launch the first bitcoin linked ETF on Tuesday on the NYSE”.

“This an exciting step but not the last”, Douglas Yones head of exchange traded products at the NYSE told the New York times’ DealBook.

The ride for bitcoin to more than doubling since April this year has been volatile. The approval of the ETF and increase in institutional holdings being credited as regulatory acceptance.

Coinshare reported bitcoin this week saw the largest inflow totaling US$70m marking its fifth consecutive week of inflows. Although the inflow remains much lower than first quarter of the year by US investors, the recent approval of the ETF would likely to make a bigger impact on inflow for the rest of the year.

The development also to bid futures prices up further and the spread between futures and spot in growing which would encourage traders to basis trade, long spot and shorting futures.