ProShares to launch Bitcoin-linked investment fund

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ProShares to launch Bitcoin-linked investment fund

ProShares, a leader in exchange traded funds, a type of investment linked to an index, will unveil the bitcoin futures-linked vehicle under the ticker BITO on Monday.

The launch has been eagerly anticipated in the crypto-money world, with bitcoins rising above $62,000 in recent days, a level not seen since April.

Rather than a direct investment in the digital currency, ProShares says BITO will invest mainly in futures bitcoins.

Unlike mutual funds, which are traded only once a day, ETFs can be traded throughout the trading day.

We believe a multitude of investors have been eagerly awaiting the launch of a Bitcoin-linked ETF, said ProShares Chief Executive Michael Sapir.

BITO will open up exposure to bitcoin to a large segment of investors that have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another cryptocurrency provider and creating a Bitcoin wallet or are concerned that these providers may be unregulated and subject to security risks. The Securities and Exchange Committee has not blocked the launch of the ProShares fund. The agency however, asked investors to weigh the potential risks and benefits with a recent tweet on Twitter.

The launch of the ETF comes just six months after crypto money exchange platform Coinbase premiered on Nasdaq. The company, founded in 2012, is now worth more than $75 billion.