SEC Chairman Gary Gensler and Proshares CEO Simeon Hyman discuss The first ETF linked to Bitcoin was launched in the CNBC Breaking News section on Tuesday.
Proshares Bitcoin Strategy ETF, also known as BITO, is based on the CME Bitcoin futures contract. CNBC commentator Bob Pisano shared some investors’ concerns that BTC futures may deviate from the BTC spot price:
“The futures market is a better place to find prices,” Hyman said. “The CME futures market has more trading volumes than the largest crypto exchange in the United States. We launched a similar mutual fund on July 28. Since its launch last Friday, the Bitcoin reference rate has risen by 52%. Our BTC Mutual funds rose 52% and BTC Grayscale Trust rose 37%.”
BITO’s debut was announcing other BTC-related funds, including Valkyrie’s Bitcoin Strategy ETF, Will start trading on the Nasdaq.A new fund based on the blockchain industry called Volt crypto industry revolution and technology ETF, Also intends to start trading as soon as possible.
Pisano asked SEC Chairman Gary Gensler for his previous comments. Said He has different concerns about issuing BTC futures-linked funds and fully linked BTC funds. Gensler confirmed:
“What we are trying to do is to bring new projects into the scope of investor protection. For the past four years, BTC futures have been regulated by the SEC’s sister agency, the Commodity Futures Trading Commission. Over the past four years, federal regulators have been monitoring certain things, and It was brought into the jurisdiction of the SEC through the Investment Company Act of 1940.”
Hyman expressed confidence in the new fund and pointed out the history of BTC price movements, U.S. securities laws, and opportunities to create new opportunities for investors:
“There is a lot of history here. We believe it will trade well. We believe that regulated futures traded in a 40-act ETF will provide many people who may have been on the sidelines with access to BTC.”