The first US Bitcoin ETF, BITO (Bitcoin Strategy ETF by ProShares), has had great success with record trading volumes after trading on the New York Stock Exchange (NYSE) earlier this week. On launch day it was up more than 4%.
In a recent interview with CNBC, Sam Bankman-Fried Note that the launch of a Bitcoin ETF in the US could pave the way for more structured crypto investment products, which could increase institutional interest in Bitcoin, a “giant leap forward” for the world.
One research The latest report from Fidelity shows that 90% of the institutional investors surveyed expressed a desire for crypto investment products. Many see this as a more appropriate means of getting involved in cryptocurrencies as compared to holding the asset in physical form.
This enthusiasm has certainly led to the success of the ProShares ETF. BITO exceeded $ 1 billion in trading volume on day one and became the second most successful ETF of all time.
Several other Bitcoin ETFs will also hit the market in the coming days. In addition, the Valkyrie ETF was added to trading yesterday (October 22nd).
Nice look, how ridiculous $ BITOThe first two days of the volume were up. Here it is compared to the second most successful ETF launch of all time. It has doubled each of them and is in good cow with growth on the second day (see $ QQQ, $ GLD) above @tpsarofagis pic.twitter.com/WLzQt7yD3t
– Eric Balchunas (@EricBalchunas) October 21, 2021
“Look how satisfied you are with the first two days of BITO sales. Here are the results of the most successful ETF launches of all time. It has more than doubled for each of these ETFs and is doing well for a second day. “
Bankman-Fried also suggests that the introduction of an ETF could speed up the process of creating a regulatory framework for the industry. The crypto industry is still struggling with uncertainty and fears of a lack of regulation.
“I wouldn’t be surprised if the markets and exchanges were more regulated, especially with regard to anti-market manipulation.”
An appropriate regulatory framework would also allow FTX to expand into the US, where they are currently inactive due to obstacles such as licensing and regulation. Exchange FTX recently raised $ 420 million from 69 investors in a funding round, resulting in a valuation of around $ 25 billion in just two years of existence.
However, this exponential popularity bodes ill for the ProShares ETF, which has already depleted two-thirds of the total Bitcoin futures position limit of 5,000 contracts.
One solution to this problem is to offer longer contracts. However, this harbors the risk that the ETF will go too far compared to the BTC price on the spot market.
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According to AMBCrypto