- The first U.S. bitcoin futures exchange-traded funds launched this week, allowing investors to buy and sell the assets outside of cryptocurrency exchanges.
- The ProShares ETF saw one of the biggest first days on record, raking in $550 million from crypto-hungry investors.
- While the new asset is “just the tip of the iceberg,” it’s unclear if and when the Securities and Exchange Commission will approve bitcoin ETF investing directly in the currency.
The value of Bitcoin (BTC) has exceeded the threshold of 66,895 dollars for the first time in his history.Chesnot | Getty Images
These funds invest in bitcoin futures contracts, or agreements to buy or sell the asset later for an agreed-upon price, rather than bitcoin directly.
The new products allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges.
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While the new offerings fall short of what the industry eventually wants — ETFs investing in the currency itself — it didn’t slow excitement for the first launch.
The ProShares Bitcoin Strategy ETF (ticker: BITO) saw one of the biggest first days on record for ETFs, raking in $550 million from crypto-hungry investors. Overall, more than $1.01 billion of shares changed hands, according to Morningstar.
Moreover, the price of bitcoin spiked by more than 4% on Tuesday to $64,206.51, according to Coin Metrics, and soared to an all-time high of $66,900 on Wednesday, passing the previous intraday record of $64,899 from mid-April.