The very first Bitcoin ETF has hit the market. And it nearly broke the trading record for any debuting ETF ever. The Bitcoin futures ETF launched yesterday is a huge success. Enthusiastic investors traded $280 million worth of shares in the first 20 minutes. In one day, nearly $1 billion worth of ETFs were traded.
Bitcoin ETF Hits Second Highest Volume Ever
ProShares’ Bitcoin Strategy ETF began trading at 3:30 PM yesterday on the New York Stock Exchange under the ticker BITO. Investors who wanted exposure to the cryptocurrency can now buy shares that are pegged to the future price of Bitcoin. 1 BITO share started at a price of $40 and rose to a price of $41.94 in 1 day. That means BITO has recorded a price increase of 4.85% on its first day.
Analysts said the massive volume traded nearly broke a record: Although it just missed the $1 billion mark, it was very close. Bloomberg figures show that $994 million was traded. Only one ETF in the history of US ETFs reached $1 billion on its first day, and that was BlackRock’s Carbon Transition Readiness.
Looks like the final tally is gonna be right around ~$990 million in trading for $BITO on its first day trading. https://t.co/KCoqOtRKV0
— James Seyffart (@JSeyff) October 19, 2021
“It was not expected. We thought it was going to be a big hit, but so big…” said Bloomberg ETF research analyst James Seyfarrt.
“I thought if it traded $250 million on day one, that would have been a success. The Bitcoin ETF made that volume in just 30 minutes.”
A ‘real’ Bitcoin ETF is still desired
The ETF gives institutional and private investors access to Bitcoin without having to buy and store Bitcoin themselves, which can be complicated for some investors. However, this particular ETF is a futures ETF, meaning that investors buy and sell stocks that represent contracts that bet on the price of Bitcoin. According to analysts, the best would be a spot ETF. Before that too, a long list of high-profile companies is waiting for approval on a Bitcoin ETF that is directly linked to the price of the crypto.
The SEC has rejected applications for a genuine Bitcoin ETF for years. This is because they are concerned about market manipulation in the crypto world. However, SEC chairman Gary Gensler indicated in August that the SEC would be inclined to approve an ETF that tracks Bitcoin futures, presumably because the futures market is already regulated by the CFTC.
While a real Bitcoin ETF might have been even nicer, ProShares’ Bitcoin Strategy ETF has certainly proven that Wall Street investors are eager to invest in Bitcoin.