ProShares’ exchange-traded BITO Bitcoin futures fund made massive gains on its first day of trading and, according to reports as of October 20, 2021, attracted a total of $ 570 million in net worth.
The ProShares Bitcoin ETF is taking off
After several years of rejection and rejection by financial regulators in the United States, the country finally welcomed its first exchange-traded Bitcoin fund this week, and the financial instrument hit record highs on its first day of trading.
According to sources close to the matter, the ProShares BITO futures-based Bitcoin exchange-traded fund attracted a total of $ 570 million in assets on its first day of trading due to strong demand from mostly retail investors.
In particular, the ProShares Bitcoin Strategy ETF, which went live on Tuesday, October 19, 2021, with seed capital of just $ 20 million, made history by getting 6.4 million BITOs worth 6.4 million BITO within just 20 minutes of its launch of $ 264 million sold to investors.
Strong bullish signal
Likewise, the fund’s trading volume reportedly hit $ 1 billion on day one, making it the second most traded new ETF in Wall Street history after the SPDR Gold Shares Fund.
Cryptocurrency market participants and watchers have indicated that BITO’s success on its debut is a strong bullish signal for the industry as the SEC’s approval of a Bitcoin ETF was a highly anticipated event.
“This will likely be what we all expected, namely that it would be an access tool for certain players in the market,” said Dave Nadig, chief investment officer and director of research at ETF Trends, adding that the new one is on Futures-based Bitcoin ETFs would indirectly attract more investors to crypto.
While a wide variety of crypto market participants, including Michael Sonnenshein Grayscale’s CEO firmly believes that a futures-based Bitcoin ETF has no real value to offer investors, while others have argued that the SEC approval of a Bitcoin ETF (in whatever form) is a strong sign for this is that the industry is maturing quickly and as such it should be celebrated.
Meanwhile, Sam Bankman-Fried, the CEO of the FTX crypto exchange described ProShare’s ETF debut as “incredibly bullish”, adding that “there is a really positive sentiment especially with the ETF”.
At press time, Bitcoin price is hovering at $ 63,840 with a market cap of $ 1.20 trillion, according to CoinMarketCap.
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