The very first American Bitcoin ETF, $ BITO, started trading on the New York Stock Exchange earlier this week with lots of support and record-breaking volumes. On his debut, it gained more than 4%. Now, according to the CEO of FTX, this is a “huge step forward” for the entire industry.

During a recent interview with CNBC, Sam Bankman-Fried noted that the launch of a Bitcoin ETF in the US could pave the way for more structured crypto investment products to hit the market. Ideally, this leads to increased institutional interest in the market’s most important digital asset.

This is what the future of the crypto industry could look like. A recent study by Fidelity found that 90% of institutional investors surveyed expressed a desire for digital asset investment products. Many see it as the preferable means of gaining crypto exposure versus physically holding the assets.

This enthusiasm has undoubtedly contributed to the success of ProShares ETF. The asset topped $ 1 billion in trading volume on day one, making it the second most successful ETF of all time. Several more Bitcoin ETFs are expected to hit the market in the coming days. The Valkyrie ETF is even expected to start trading on Friday.

Nice look at how ridiculous the first two days of $ BITO’s volume were. Here it is compared to the most successful ETF launches of all time. It doubled each of them and is in good growth on day two (see $ QQQ, $ GLD) via @tpsarofagis pic.twitter.com/WLzQt7yD3t

– Eric Balchunas (@EricBalchunas) October 21, 2021

Speaking to CNBC, Bankman-Fried also suggested that this rollout could expedite the process of providing a legal framework for the industry. The industry is still struggling with uncertainty and fear of a lack of regulation. He said,

“I wouldn’t be surprised if the markets and exchanges were more regulated, especially with regard to anti-market manipulation.”

A proper legal framework will also allow FTX to expand into the US, where the exchange is currently inoperative due to obstacles such as licenses and regulations. The exchange recently raised $ 420 million from 69 investors in a funding round, which resulted in a valuation of around $ 25 billion in just two years of existence.

That exponential popularity, however, hasn’t carried over so well to the ProShares ETF, which has already used up two-thirds of its total Bitcoin futures position limits of 5,000 contracts.

One solution to address this problem is to offer longer contracts. However, this carries the risk of the ETF deviating too far from the spot BTC prices.


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