March 28, 2024

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.

The opening price of ProShares' Bitcoin Strategy (BITO) product was $40.44 and rose 2.6% to $41.94 by the close of trading.On the first day, a total of more than 24.3 million shares changed hands, which indicateson the high interest of investors in the cryptocurrency market.

BITO's initial capital was $20 million, but by the end of Tuesday it had increased to $590 million.With a trading volume of almost $1 billion, the product ranked second among non-commodityETFs 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 noticeable positive impact not only on the rate of the underlying asset, but also on the cryptocurrency marketOver the past day, the price of BTC has increased by 2.71% and at the momentpublications is $64,100, coming close to the all-time high.event is a bullish signal in the long run.

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

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