First bitcoin futures ETF from ProShares makes trading debut



CNBC’s Jim Cramer and ‘Squawk on the Street’ team react to the market debut for the first bitcoin futures ETF from ProShares. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

Shares of the first U.S. bitcoin-linked exchange-traded fund rose in their trading debut Tuesday.

The ProShares Bitcoin Strategy ETF, ticker “BITO,” jumped more than 3% to $41.44. The fund tracks CME bitcoin futures, or contracts speculating on the future price of bitcoin, rather than the crypto itself.


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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.

The price of bitcoin briefly popped Tuesday morning after trading began, jumping 3% to $63,035.04, according to Coin Metrics, nearing its all-time high from April 14 of $64,899. Bitcoin futures gained about 2% as well.

“The fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts. The fund does not invest directly in bitcoin,” the ProShares website says of the fund. The fund has an expense ratio of 0.95%.

ProShares is the eighth-biggest ETF provider by assets, according to ETDB.com. The firm is known for its funds that use leverage to track moves in certain indexes multiplied by a certain amount. ProShares executives rang the opening bell at the NYSE, where the ETF trades.

The crypto industry has been longing for a bitcoin-related ETF for many years. In about 2017, asset managers began applying to launch spot bitcoin ETFs but their proposals were rejected by the Securities and Exchange Commission, which maintained none were able to prove market resistance to manipulation. The rush of applications for futures-based ETFs came this year shortly after Chairman Gary Gensler took the helm of the agency.

“What you have here is a product that’s been overseen for four years by the U.S. federal regulator CFTC, and that’s being wrapped inside of something within our jurisdiction called the Investment Company Act of 1940, so we have some ability to bring it inside of investor protection,” Gensler said of the new ETF on CNBC’s “Squawk on the Street” on Tuesday. “It’s still a highly speculative asset class and listeners should understand that underneath this, it still has that same aspect of volatility and speculation.”

Some argue the impact of an ETF, particularly one tied to futures contracts, is lessened by adoption of crypto by companies and fintechs. Investors have many ways to get indirect exposure to bitcoin without actually owning it, through institutional-grade funds, financial apps like PayPal and Square’s CashApp, or crypto-related equities like Coinbase and mining stocks.

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26 thoughts on “First bitcoin futures ETF from ProShares makes trading debut

  • January 23, 2022 at 8:08 pm
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  • January 23, 2022 at 8:08 pm
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    Thanks for the informative video. Newbies usually undermine and neglect the importance of technical analysis with regards to trading. technical analysis overly predicted the movement of assets price regardless of what is happening in wider and broad market, Essentially the procedure involves studying the the paths of particular asset movement in the past so as to establish a sustainable pattern that can be used to learn future movement of an asset. Doing technical analysis can be quiet different which is why newbies/traders neglect day trading their coin and stick to holding which is very dangerous as when the market goes bearish or bullish , advice any newbies to buy the dip and to seek help from not just any traders but an establish trading expert with at least 96 % trade accuracy. Having met Prof Greg I don’t have to bother if the prices are going bullish or bearish.

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  • January 23, 2022 at 8:08 pm
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    The best decision I ever made in my life was investing in financial market. Trust me guys, it pays!😊

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  • January 23, 2022 at 8:08 pm
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    ​On CNBC when bitcoin is down they mention it 10 to 15 times. Now all time high, 3 mentions all day since 8 am

    Reply
  • January 23, 2022 at 8:08 pm
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    $PPT 🚀  PopDeFi

    Reply
  • January 23, 2022 at 8:08 pm
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    Highest etf in volume first day ever recorded. They weren’t paying attention to the data coming in on the screen

    Reply
  • January 23, 2022 at 8:08 pm
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    <<I respect your work mate, B T C appear bound for high volatility as several on-chain metrics suggest that buying pressure is accelerating. Still, these cryptocurrencies must overcome one obstacle to resume the uptrend because you are pointing people in the right direction, It is manipulated but that can be a good thing if you understand it. We should all know that when these reports are bullish take some off to the side lines, when news gets bearish start buying. "Keep it simple simple" that bear/ correction was the best thing that happened me. but all thanks to Randy Douglas for his amazing skills for help me to earn 11 BTC in a month through his trading tips and strategy.👇

    Reply
  • January 23, 2022 at 8:08 pm
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    My trading mentor,👆👆runs an investment platform like that…….I paid in time €3500 just last week and got a paid profit of €35000 it’s been an amazing experience

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  • January 23, 2022 at 8:08 pm
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    My trading mentor,👆👆runs an investment platform like that…….I paid in time €3500 just last week and got a paid profit of €35000 it’s been an amazing experience

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  • January 23, 2022 at 8:08 pm
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    Hello everyone ☝️ is trustworthy and ethical thanks to them I made $10,000 so far

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  • January 23, 2022 at 8:08 pm
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    I advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses .The market is very unstable and you can't tell if it's going bearish or bullish.While myself and others are trad!n without fear of making a loss others are being patient for the price to skyrocket. It all depends on the pattern you follow. with pro tips from daniel I have gained very large income.

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  • January 23, 2022 at 8:08 pm
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    This is a nuclear bomb 2x to 50x.
    Really hope people will be alright.

    Reply
  • January 23, 2022 at 8:08 pm
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    Jim coping SO hard lmao

    Reply
  • January 23, 2022 at 8:08 pm
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    TA is all well and good but I find it truly baffling that all major crypto youtubers just look at pure TA and completely ignore the bigger narrative of why BTC is pumping and why the future outlook might not be as rosy as it seems. It's kinda irresponsible to ignore the fact that each ETF launch so far has caused a major dump at the peaks of BTC. We were already on shaky footing with historically low volume and almost pure whale pumps, narrowly avoiding a long-term bear market. This is the worst possible time in history to invest as so many don't back up their crypto assets.More emphasis should be put into day tradiing as it is less affected by the unpredictable nature of the market.I have made over 13 btc 4rm day tradn with Gary Bale’s insights and signals in less than 4 weeks,this is one of the best medium to backup your assets incase it goes bearish.

    Reply
  • January 23, 2022 at 8:08 pm
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    Some segments in the video are stamped not adjacent to each other

    Reply
  • January 23, 2022 at 8:08 pm
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    Kramer the hedgefund mouthpiece

    Reply
  • January 23, 2022 at 8:08 pm
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    Bitcoin don't care about false ETF.

    Reply
  • January 23, 2022 at 8:08 pm
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    Kramer is a Bitcoin miss out 😂😂😂

    Reply
  • January 23, 2022 at 8:08 pm
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    This guy is a joke!!! 🤣🤣🤣🤣

    Reply
  • January 23, 2022 at 8:08 pm
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    Black November 2021

    Reply
  • January 23, 2022 at 8:08 pm
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    Cryptocurrency is dependent on illegal transactions. Otherwise its worthless.

    Reply
  • January 23, 2022 at 8:08 pm
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    (ELON) COIN IS MAKING MILLIONAIRES!!
    Dogelon Mars coin going to Mars

    Reply
  • January 23, 2022 at 8:08 pm
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    CNBC needs to fire Jim. He is such an idiot.

    Reply
  • January 23, 2022 at 8:08 pm
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    Agresive. Patience.

    Reply

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