December 4, 2021

ProShares Bitcoin ETF Trading Volume Reaches $ 993 Million on Launch Day

ProShares Bitcoin ETF Trading Volume Reaches $ 993 Million on Launch Day

The first U.S. exchange-traded fund based on bitcoin futures raised $ 570 million on the day of launch on NYSE Arca, and its trading volume was 993 million.

Bitcoin Strategy Product Open Price (BITO)company ProShares was $ 40.44, and by the close of trading rose 2.6% to $ 41.94. On the first day, in total, more than 24.3 million shares passed from hand to hand, which indicates a high interest of investors in the cryptocurrency market.

The initial capital of BITO was $ 20 million, but by the end of Tuesday it increased to $ 590 million. With a trading volume of almost $ 1 billion, the product took the second place among non-commodity ETFs in history, Bloomberg analyst Erik Balchunas said. The best results were shown only by the Blackrock ETF with $ 1.16 billion, the starting volume of which, according to the analyst, was artificially inflated.

Despite the impressive performance,ETF Trends researchers believe that most of the interest in BITO came from retail investors, as few large trades were made in the first day.

The launch of the first Bitcoin ETF in the United States had a notablea positive impact not only on the rate of the underlying asset, but also on the cryptocurrency market as a whole. Over the past 24 hours, the price of BTC has increased by 2.71% and at the time of publication is $ 64,100, close to the historical maximum. Analysts see the event as a bullish signal in the long term.

However, Erik Balchunas also noted that if inIn the near future, other exchange-traded funds based on digital assets will not enter the market, then BITO may receive the status of "the only". This will significantly complicate the withdrawal of new crypto ETFs and negatively affect the long-term development of the market.

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