ProShares Bitcoin ETF Launch Successful
We explained it to you a few days ago, this very first Bitcoin ETF had finally been authorized by the SEC after years of waiting. And if it is based on futures contracts, it still made the headlines and was widely interpreted as a sign of openness from the American financial policeman.
The success was in any case confirmed from day one. ProShares’ Bitcoin ETF (BITO) total volume exceeded $ 1 billion on the first day. This makes it the second biggest launch of an ETF, according to Bloomberg analyst Eric Balchunas.
He also explains that the only ETF to surpass BITO when it was launched relied on a single planned investor, which had increased the volume on the first day. ProShares Bitcoin ETF would therefore be first in terms of “natural” volume:
“This is easily the biggest daily launch of any ETF, in terms of ‘natural’ volume. It has also traded more than 99% of all ETFs. […] It definitely exceeded our expectations. “
To put things even more in perspective, we can focus on the first hour of trading: the volume there reached over $ 500 million.
Fears that an ETF based on futures contracts may not be attractive enough therefore seem unfounded. It also shows that there is a real appetite for investment products that allow exposure to Bitcoin without having to directly hold BTC. Once again, we can sense the interest of institutional investors, who are increasingly turning to cryptocurrency in recent months.
👉 On the same subject – Grayscale confirms its intention to transform its Grayscale Bitcoin Trust (GBTC) into an ETF
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About the author: Marine Debelloir
Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.