First Bitcoin ETF in NYSE Hits $1 Billion

ProShares’ Bitcoin Strategy exchange-traded fund (BITO), the first-ever Bitcoin ETF in the United States, received an overwhelming response from the traders on its opening day of trade on the New York Stock Exchange (NYSE).

The NYSE Debuts the First-Ever Bitcoin Futures ETF with Over US$1 Billion in Trading Volume on Day One.

ProShares’ Bitcoin Strategy exchange-traded fund (BITO), the first-ever Bitcoin ETF in the United States, received an overwhelming response from the traders on its opening day of trade on the New York Stock Exchange (NYSE). This Bitcoin Futures ETF (Exchange Traded Fund) of ProShare was launched on Monday (October 19, 2021). BITO’s opening price and the closing price on the NYSE were US$40.88. TradingView data shows that 24.313 million shares changed hands on October 19, taking the 24-hour volume on the opening day to just over $1 billion. 

While commenting on the first-day performance of BITO, a senior ETF analyst for Bloomberg, Eric Balchunas,  said that this Bitcoin Futures based ETF of ProShares is definitely the largest one when the "natural" or "grassroots" interest is taken into consideration. 

He also said that the April launch volume of the US Carbon Transition Readiness ETF (LCTU) of Blackrock was unnatural because this ETF was driven by "one pre-planned giant investor."  Balchunas went on to point out that because of this unnatural volume dependent on one giant investor, the daily volume on the following days dropped sharply to just US $2 million to US $6 million.

Reports say that on the first day, ProShares’ BITO ETF received inflows of around US $570 million on the first day of its launch. Experts suggest that in terms of year-one net flows, this exchange-traded fund has the potential to become a first-to-market single commodity ETF in 12 months. 

Eric Balchunas was quick to warn that this roaring success of BITO may have consequences for the prospects of the ETFs of other firms in line for SEC review. He said:

"The other result of today is it makes life that much harder for the next in line ETFs to succeed. Time is of the essence. Every day counts because once an ETF gets known as 'the one' and has tons of liquidity, it's virtually impossible to steal."

While answering queries regarding the SEC’s stance of approving ProShares’ BTC Futures based ETF instead of spot price of bitcoin, SEC chairman Gary Gensler said:

"BTC futures have been overseen by the SEC’s sister agency, The Commodities Futures Trading Commission, for the past four years. You have something that’s been overseen for the past four years by a federal regulator and it’s also been wrapped up in the SEC’s jurisdiction through the Investment Company Act of 1940."

The next Bitcoin futures-based ETF that is in line for review by the U.S. Securities and Exchange Commission (SEC) is Valkyrie’s Bitcoin futures-based ETF.