ProShares’ Bitcoin Strategy Exchange Traded Fund (BITO) set the highest ever first-day “natural” trading volume of an ETF, and by the end of the opening day, this figure was just over $1 billion.
It ranks second overall, following Blackrock’s US Carbon Transformation Preparation ETF, which was booked for $1.16B when it debuted in April.
ProShare Launch of ETF based on Bitcoin futures It was listed on the New York Stock Exchange (NYSE) on October 19, with an opening price of $40.88. According to TradingView data, BITO closed at US$41.94 on the day, and a total of 24.313 million shares changed hands, which is equivalent to slightly more than US$1 billion in trading volume on the first day.
Commenting on the performance of BITO on the opening day, Bloomberg’s senior ETF analyst Eric Balchunas tweeted that ProShares’ ETF can be said to be the most “natural” or “grassroot interest”.
If we do not rule out that the trading volume on the first day is actually a pre-planned giant investor or BYOA (unnatural) ETF, it still ranks second. This is that list. The reason why some of them should not be included in the IMO is that they do not really represent grassroots interests. pic.twitter.com/wmZiHnpFrS
— Eric Balchunas (@EricBalchunas) October 19, 2021
Balchunas said that BlackRock’s US Carbon Transformation Preparation ETF (LCTU) April issuance was “unnatural” because it was driven by “a pre-planned giant investor.” Within a few days after its launch, LCTU’s daily trading volume also dropped sharply to between US$2 million and US$6 million.
According to reports, BITO has flown in funds worth US$570 million on the first day, which indicates that ProShares’ ETF can rank itself as an industry heavyweight in terms of the first-year net flow of a single-commodity ETF listed for the first time within 12 months.
According to data from FactSet, the two leading single-commodity ETFs are gold and silver, with flows of US$3 billion and US$1.7 billion in the first year. Except for commodities, Invesco QQQ Trust’s ETP had the largest first-year flow of US$5.351 billion.
Want to know how big the new Bitcoin futures ETF might be?
The white paper we submitted to the US Securities and Exchange Commission last week has some background. For example, here is the first year net flow table (FactSet data) for each single commodity ETF that is listed for the first time.https://t.co/3UnIel6sfX pic.twitter.com/h5Jg6RdgWd
-Matt Hogan (@Matt_Hougan) October 18, 2021
Although the bullish performance marks an important milestone for ProShares and the crypto industry, Balchunas warned that this may Next from other companies Launch your own Bitcoin (Bitcoin) Futures ETF:
“Another result of today is that it makes it more difficult for the next ETF to succeed. Time is life. Every day is important because once an ETF is called the’only’ and has a lot of liquidity, it is almost impossible to be steal.”
After ProShares launched the ETF on Tuesday, Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), outlined in an interview why he and The US Securities and Exchange Commission supports ETFs backed by Bitcoin futures Contrary to the spot price of BTC.
“For the past four years, BTC futures have been overseen by the Commodity Futures Trading Commission, a sister agency of the US Securities and Exchange Commission. For the past four years, federal regulators have been monitoring certain things and have included them in the SEC through the Investment Company Act of 1940. Jurisdiction,” he said.
Valkyrie’s Bitcoin futures-based ETF will become The second product to join BITO At the New York Stock Exchange this week. It brazenly changed its stock symbol to BTFD, which is a slang term for Buy The F-ing Dip.