The first Bitcoin exchange traded fund (ETF) that’s listed in the U.S. debuted as the second-most heavily traded fund on record.
The ProShares Bitcoin Strategy ETF (ticker symbol: BITO) rose 4.9% to $41.94 U.S. in its first day of trading. More than 24 million shares changed hands.
With turnover of almost $1 billion U.S., BITO’s debut ranked behind only a BlackRock carbon fund for a first day of trading, the latter of which ranks higher due to pre-seed investments. Options on the Bitcoin ETF will begin trading on the New York Stock Exchange today (October 20).
Meanwhile, Bitcoin has made a run at its record high of just under $65,000 U.S.
A Bitcoin ETF has been long-awaited by both the cryptocurrency community and investors on Wall Street, many of whom have argued for years that approval by regulators would open up digital currencies to more mainstream investors.
The ProShares fund is based on futures contracts and was filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections.”
Retail investors rushed to buy the ETF. BITO was one of the most bought assets on Fidelity’s platform with more than 8,800 buy orders coming from customers.
Analysts are bullish on BITO’s prospects, saying the futures-based Bitcoin ETF could attract more than $50 billion U.S. in inflows in its first year given the hype around it.
There are other applications for futures-based Bitcoin ETFs in the queue. Analysts are anticipating launches from issuers such as Valkyrie, whose Bitcoin Strategy ETF could trade under the ticker BTFD.
Meanwhile, Grayscale Investments and the New York Stock Exchange filed to convert the world’s biggest Bitcoin fund, ticker GBTC, into an ETF, appealing to regulators for approval just as its wildly popular vehicle is beset with new competition.
