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The incredible rise of cryptocurrency, especially the interest in Bitcoin, is captivating. The cryptocurrency market has grown by leaps and bounds when most other investment destinations struggled. That sentiment gradually changed and investors showed courage in parking their money in investment tools. This allowed cryptocurrency to flourish. The next advance in this is coming in the form of cryptocurrency-linked exchange-traded funds, or ETFs, a type of security that tracks an index, sector, or commodity, but which can be purchased or sold on a stock exchange in the same way a regular stock can be.In a landmark moment for cryptocurrency, the first-ever Bitcoin ETF in the US started trading at the New York Stock Exchange (NYSE) in October. The ProShares Bitcoin Strategy ETF goes by the ticker name of BITO.Here are a few things to know about BITO:– The bitcoin-linked ETF began trading on the NYSE ARCA exchange on October 19 this year.– Investors can buy shares of BITO directly through the fund company or through a brokerage.– Since ETFs are investment securities traded on an exchange like stocks, the BITO ETF provides simple, indirect access to this cryptocurrency for retail investors. To track Bitcoin’s price, BITO buys Bitcoin futures, which are then securitized into a tradeable ETF.– But investors should expect the price and performance of Bitcoin futures to change from the current “spot” price of Bitcoin.– BITO is the first Bitcoin ETF to be listed on a US stock exchange, but ETFs were previously launched in Canada and Europe.– To trade in a Bitcoin ETF, investors have to first choose a financial institution through which they would want to trade. Then they should open a trading account, add money to it.– An important aspect of futures trading is thorough research about their options. Finally, place the trade.



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