ProShares Launches First Bitcoin-Linked ETF in United States History
ProShares introduces BITO, the first U.S. bitcoin-linked ETF, allowing investors to gain cryptocurrency exposure through a standard brokerage account. The fund invests in bitcoin futures contracts rather than holding the digital currency directly.
ProShares officially launches the first bitcoin-linked ETF in the United States under the ticker BITO, marking a major milestone for the financial industry. This new fund gives investors a highly convenient way to gain exposure to bitcoin returns without needing to set up an account with a cryptocurrency exchange or manage a digital wallet.
BITO trades just like a traditional stock, which removes the technical hurdles and security concerns that often prevent everyday investors from entering the crypto market. ProShares CEO Michael L. Sapir notes that this launch opens up bitcoin access to a large segment of people who are already comfortable buying standard equities and ETFs.
Instead of holding actual bitcoin, the ProShares Bitcoin Strategy ETF invests primarily in bitcoin futures contracts. The company compares this historic 2021 launch to the early introductions of the first equity ETF in 1993, the first bond ETF in 2002, and the first gold ETF in 2004.