First Bitcoin Futures ETF Becomes Second-Highest Traded Fund Ever

20th October 2021
First Bitcoin Futures ETF Becomes Second-Highest Traded Fund Ever

The first US bitcoin ETF (exchange traded fund) climbed on its first day of trading on Tuesday, with eager investors trading nearly USD 280 million worth of shares in the first 20 minutes.

According to Bloomberg, the ProShares Bitcoin Strategy ETF, trading under the the ticker BITO, rose about 4.9% to USD 41.94. More than 24 million shares were exchanged on Tuesday, with a turnover of just under USD 1 billion.

Only BlackRock’s Carbon Transition Readiness ETF managed to hit USD 1 billion on its first trading day back in April.

“I thought if it traded $250 million in the first day, it would be a success. It did that in just 30 minutes”, Bloomberg ETF research analyst James Seyfarrt said.

The ETF will give retail and institutional investors access to bitcoin without actually having to buy the cryptocurrency.

However, a futures ETF means that investors are only purchasing shares that represent contracts betting on bitcoin’s price movements, as opposed to spot-based ETF that will be directly pegged to the price.

As a result of the launch, bitcoin prices climbed to a 6-month high and just off its all-time high of USD 65,000.

A bitcoin ETF signifies a slight change in sentiment towards cryptocurrencies by regulators. However, it’s clear and definite that investors are keen to jump on the crypto bandwagon.

Image Credit: Andre Francois Mckenzie on Unsplash

Written by Bread News Team
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