ProShares’ Bitcoin Strategy Exchange-Traded Fund (BITO) recorded its highest “natural” first-day volume for an ETF, at over $ 1 billion a year.
It ranks second overall, behind the US Blackrock Carbon-Ready ETF, which was $ 1.16 billion when it was launched in April.
ProShare’s Bitcoin futures-based ETF debuted on October 19 on the New York Stock Exchange (NYSE) with an opening price of $ 40.88. According to data from TradingView, BITO closed the day at $ 41.94 with a total of 24.313 million shares changing hands, representing a first-day volume of just over $ 1 billion.
Speaking of BITO’s opening day performance, Bloomberg’s senior ETF analyst Eric Balchunas tweeted that the ProShares ETF is arguably the largest in terms of “natural interest” or “base rate”.
Unless we rule out ETFs where their day-one volume is really massively pre-planned or BYOA (not of course), it still ranks second overall. Here is the list. The reason some of these shouldn’t be included in the IMO is because they don’t really represent the interests of the grassroots. pic.twitter.com/wmZiHnpFrS
– Eric Balchunas (@EricBalchunas) October 19, 2021
Balchunas said the volume of Blackrock’s April ETF launch (LCTU) was “unnatural” as it was driven by “a massive investor who planned ahead.” The daily volume of LCTU also fell to between $ 2 million and $ 6 million in the days after its launch.
According to the report, $ 570 million was poured into BITO on day one, suggesting the ProShares ETF is emerging as the industry heavyweight in terms of net outflows for the year for the first single commodity ETF to hit the market in 12 months , could classify.
According to data from FactSet, the top two commodity ETFs are gold and silver, with inflows for the year of $ 3 billion and $ 1.7 billion, respectively. Outside of commodities, the largest outflow of ETPs in a single year of $ 5,351 billion went to the Invesco QQQ Trust.
Wondering how the new Bitcoin futures ETF could turn out big?
The white papers we filed with the SEC last week have some context. For example, here is a table showing the first year net flows into each and every commodity ETF that hits the market first (FactSet data) .https: //t.co/3UnIel6sfX pic.twitter.com/h5Jg6RdgWd
– Matt Hougan (@Matt_Hougan) October 18, 2021
While the bullish performance marks an important milestone for ProShares and the crypto sector, Balchunas warned that launching their own Bitcoin (BTC) futures ETF could have consequences for other companies in the pipeline. )
“The other finding today is that it will make life a lot harder for the next ETFs to be successful. Time is of the essence. Every day counts because once an ETF is known as “the one” and has a lot of liquidity, it is practically impossible to steal. “
Related: Buy rumors … buy news? BTC price will exceed $ 63,000 when the US Bitcoin ETF hits the market
Following the introduction of ProShares’ ETF on Tuesday, SEC chairman Gary Gensler explained in an interview why he and the SEC are campaigning for covered ETFs backed by Bitcoin futures instead of the spot price of BTC.
“BTC futures contracts have been regulated for the past four years by the SEC’s sister agency, the Commodity Futures Trading Commission. You have something that has been overseen by a federal regulator for the past four years and is also under the jurisdiction of the SEC under the Investment Companies Act of 1940, ”he said.
Valkyrie’s bitcoin futures-based ETF will be the second product to join BITO on the NYSE this week. It quickly changed its code to BTFD, which is Buy The F-ing Dip slang.