The First BTC futures ETF trades almost $1 billion on one day and broke the trading record to any debuting ETF so let’s find out more about it in our latest Bitcoin news today.
The first BTC Futures ETF launched yesterday and the eager investors traded $280 million worth of shares in about 20 minutes. By the time the market closed at around $1 billion in shares that changed hands. ProShares’ Bitcoin Strategy ETF started trading today on New York Stock Exchange under the ticker BITO and recieved approval from the US Securities and Exchange Commission with investors wanting more exposure to the biggest crypto were able to purchase shares tied to the future of the price of BTC that increased $42 at one point and 5.4% increase from the initial net asset value of $40 which shares closed at $41.94 with an increase of 4.85%.
— James Seyffart (@JSeyff) October 19, 2021
The analysts said that the sheer volume traded broke a record but it didn’t hit the $1 billion mark as it was close, the figures showing $994 million were traded. Only one ETF in the history of the US as it hit $1 billion on the first day and was BlackRock’s Carbon Transition readiness back in April. The ETF Analyst James Seyfarrt said:
“It was not expected. We thought it was going to be a big hit, we thought it was going to be successful. I thought if it traded $250 million in the first day, it would be a success. It did that in just 30 minutes.”
The ETF gave more retail and institutional investors access to BTC without them having to purchase and store BTC themselves and can be complicated for the investors. There’s a catch though and this particular ETF is the futures one and means that the investors are purchasing and selling shares that represent contracts betting on the price of BTC. The spot-based product is desired as a long list of high-profile companies were awaiting approval on a Bitcoin ETF which is pegged right to the price of crypto. The SEC was really slow in approving a true Bitcoin ETF and cited concerns around market manipulations in crypto.
The SEC chairman Gary Gensler indicated in August that the SEC will be inclined to approve an ETF that tracked Bitcoin futures and because the futures market is already regulated by the CFTC. While the Bitcoin ETFs give investors exposure to the crypto spot market didn’t exist in the US while they were extremely successful in Canada.
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