BITO: What You Must Know About First-Ever Bitcoin-Linked ETF

Photo by Executium on UnsplashIs a Bitcoin-linked ETF trading on the NYSE riskier than holding a Bitcoin?The moment that the Bitcoin advocates have been wishing for since 2013 is finally here. The Bitcoin-linked Exchange-Traded Fund (Ticker: BITO) is slated to start trading on the New York Stock Exchange today.It is a significant milestone in the crypto-verse and Bitcoin has been on a roll since the weekend following the news. The currency marked its position upwards of $60,000 and is aiming for a new All-Time High, riding on the optimism among the crypto enthusiasts. At the time of this writing, Bitcoin stood tall at $62,248.61, a 2.05% increase in the past 24 hours, according to CoinMarketCap.Also read: Crypto Investing: 5 Alt Coins To Buy During The DipsThe long-awaited ProShares ETF will offer investors exposure to Bitcoin futures contracts — agreements to buy or sell the asset later for an agreed-upon price.ProShares announced on their website that the first bitcoin-linked ETF in the United States (NYSE Ticker: BITO) will go live on October 19, 2021. “BITO will offer access to bitcoin with the convenience, liquidity, and tradability of an ETF,” it said.Prior to the Bitcoin-linked ETF, investors would invest in the cryptocurrency through digital currency exchanges. The risk of hacking, losing private keys to your wallet, security, fear of the unknown, were some of the concerns that traditional investors had regarding investing in Bitcoin.The second option, Bitocin Trusts, allows investors to add Bitcoin to their portfolio but comes at the price of higher fees and often doesn’t reflect the current value of the digital currency.Also Read: Solana Reaches New All-Time High: 5 Reasons Its Price Is SurgingSo, what changes with BITO? It will offer investors a chance to gain exposure to Bitcoin returns through a brokerage account. The new ETF can be…