Bitcoin Futures ETF Debuts as Second-Highest Traded Fund Ever
The first bitcoin-linked exchange-traded fund listed in the US has debuted as the second largest fund traded in record time at a turning point for the crypto industry.
The Proshares bitcoin strategy ETF, traded under the bitcoin symbol, rose almost 4.9% to $41.94. According to Bloomberg, more than 24 million shares were withdrawn on Tuesday. Because of the way the fund deals, the net flows entering or exiting the product probably won’t be known until Wednesday evening.
According to Athanasios Psarophagis of Bloomberg Intelligence, the fact that BITO’s debut had a turnover of about $ 1 billion on the first trading day gave way only to the Blackrock carbon fund, which took it thanks to preliminary investments. Bloomberg also announced that BITO options will begin trading on Wednesday on the NYSE Arca Options and NYSE American Options exchanges.
Meanwhile, bitcoin has reached a record decree of just under $65,000.
According to Stefan Ouellet, CEO and co-founder of FRNT Financial Inc (a platform for crypto Capital Markets), this aspect is related to negotiations between market participants and the growing belief that this will be considered a successful launch during the trading day. Given the number of potential retail investors who already need to join BTC, therefore, the US APR is still meeting demand.
The Bitcoin ETF was expected from both the crypto community and Wall Street investors, many of whom have argued for years that regulatory approval would open up digital currencies to more mainstream investors. SEC Chairman Gary Gensler considers the ProShares fund, based on futures contracts and registered in accordance with mutual fund rules, to provide significant protection for investors.
Read more: Why Wall Street Is Rushing to Recommend Bitcoin ETF: A Quick Analysis
Simeon Hyman, global investment strategist at Proshares, who was broadcast on Bloomberg television, announced how important it is to present BITO, the first bitcoin-related ETF, to investors as an important opportunity to comfortably invest in bitcoin on conventional brokerage accounts. This will ensure that many people join, feeling reliable in their actions.
Retail investors rushed to buy ETFs on Tuesday. BITO turned out to be one of the most purchased assets on the Fidelity platform, with more than 8,800 purchase orders from customers as of 2:55 p.m. New York time.
“This is an incredibly bullish week – there are really positive emotions, especially around ETFs,” said Sam Bankman-Fried, CEO of one of the largest Ftx crypto exchanges.
For a long time, it was believed that whoever gets approved first will receive the greatest benefits, including recognition in the industry and the opportunity to raise huge amounts of money. Some analysts are already optimistic about BITO’s prospects: a futures-based bitcoin ETF could raise more than $50 billion in the first year, given the hype surrounding it, according to well-known bitcoin bull Tom Lee, co-founder of Fundstrat Global Advisors.
There are other applications for bitcoin futures ETFs. Launches are expected from issuers such as Valkyrie, whose bitcoin ETF strategy can be sold under the ticker BTFD.
At the same time, Grayscale Investments LLC and the New York Stock Exchange have asked to convert the GBTC ticker of the world’s largest bitcoin fund into an ETF, seeking regulatory approval as its popularity faces competition.
Read more: Grayscale Files to Turn the World’s Largest Bitcoin Fund into an ETF
Market watchers have several ways to estimate the initial BITO consumption. According to Bloomberg Intelligence, the gold ticker SPDR GLD demonstrated the fastest growth of assets under management to $1 billion, reaching this level in just three days. Most recently, the sentiment fund ticker VanEck BUZZ debuted earlier this year with more than $400 million worth of shares, one of the highest numbers in ETF history on the first day.
According to James Seyfart of Bloomberg Intelligence, the largest launch in recent times will take place. He also believes that the best launch and all launches above BUZZ received the support of pre-established organizations that intended to invest hundreds of millions of dollars in funds. And many of these funds will fail due to hundreds of millions from one or two organizations lining up before the launch. But this is what an “organic release” should be.
Bloomberg News reported last week that the U.S. Securities and Exchange Commission would not block the launch of a bitcoin futures-backed fund.
Gensler was considered more open to cryptography than his predecessor Jay Clayton. Analysts note Gensler’s earlier interest in the cryptographic world – he once taught at the Sloan School of Management at the Massachusetts Institute of Technology under the name “Blockchain and Money”. Over the summer, the president made it clear that regulators could be more open to bitcoin ETFs if they relied on futures rather than the cryptocurrency itself.