ProShares’ Bitcoin Strategy Portfolio Swap (BITO) had its highest “natural” volume on the first day ever for an ETF, reaching just over $ 1 billion by the end of the opening day.
Overall, it ranks second after the US Blackrock Carbon Transition Readiness ETF, which was $ 1.16 billion when it was launched in April.
ProShare’s Bitcoin futures 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 over $ 1 billion in volume on the first day.
Regarding BITO’s opening day performance, Bloomberg’s senior ETF analyst Eric Balchunas tweeted that the ProShares ETF has the greatest “natural interest” or “baseline”.
The source: Twitter
Balchunas said Blackrock’s (LCTU) ETF launch volume in April was “unnatural” as it was driven by “a huge 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, around $ 570 million went into BITO on day one, suggesting that the ProShares ETF could rank as an industry heavyweight in terms of net outflows for an ETF for the year.
According to FactSet data, the top two commodity ETFs are gold and silver with annual inflows of $ 3 billion and $ 1.7 billion, respectively. Outside of commodities, the largest inflow of ETPs for the year was $ 5,351 billion through Invesco QQQ Trust.
The source: Twitter
While bullish performance is a major milestone for ProShares and the crypto sector, Balchunas warned that it could become difficult for other companies to launch their own Bitcoin futures ETFs:
“In addition to the success of the trading volume, the first fund will get the later born juniors in trouble. Time is of the essence. Every day that goes by counts because an ETF is known to be “unique” and has a lot of liquidity that is virtually impossible to steal. When other funds came out, BITO had its own market. “
After the ProShares ETFs were launched on Tuesday, SEC chairman Gary Gensler shared why he and the agency are in favor of contract-backed ETFs using Bitcoin futures instead of spot BTC. As reported by Bitcoin Magazine, that crucial factor is that Bitcoin futures have been overseen by the CFTC for the past four years, making them the responsibility of the SEC under the Investment Companies Act of April 1940.
Valkyrie’s Bitcoin futures ETF is likely to be the second product to hit the market this week after BITO. It quickly changed the code to BTFD, which is slang for Buy The F-ing Dip.
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According to Cointelegraph