ProShares Bitcoin ETF Trades Whopping 24M Shares on Debut

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In Brief
  • The ProShares Bitcoin Strategy ETF made a resoundingly successful debut on Oct 19, trading over $500 million.

  • The ETF’s price rose by 4.9%, and more growth seems likely.

  • Market enthusiasts cheered the development as more ETFs appear on the horizon.

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The ProShares bitcoin-futures-based ETF has become the second-highest traded fund in history. The landmark fund attracted a staggering number of trades on its debut, trading 24 million shares.

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The ProShares Bitcoin Strategy ETF launched on the New York Stock Exchange (NYSE) to great success, becoming the second-highest traded fund in history. The BITO fund traded a whopping $280 million in the first 20 minutes alone, which puts it in the top-15 opening day launches of all time. The ETF rose to a price of $41.94 on the day of launch, which was a price rise of 4.9%.

Crypto insiders and investors cheered the development, and the ProShares Bitcoin Strategy ETF is the first of its kind in the United States. The interest for any crypto-related ETF has always been high in the country, and that was evident as 24 million shares were traded on launch day. Volumes crossed $500 million, most of which were small trades.

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The ETF will also begin trading on NYSE Arca Options and NYSE American Options on Oct 20, which could be just as impressive for the one-of-a-king fund. Simeon Hyman, the global investment strategist at ProShares, told Bloomberg TV that he was excited for the fund to open investment opportunities,

We are really excited to bring BITO, the first Bitcoin-linked ETF, to investors as an important opportunity for them to conveniently invest in Bitcoin in their regular brokerage account. This is going to allow many people who have been waiting for an easy way to do this and a robust way to do this to now be involved and have it in their portfolios.

The ETF approval could usher in a new age for investment in bitcoin, though there are obstacles yet. The SEC is intensely deliberating regulation for the market, with investor protection being a key item on the agenda.

More bitcoin ETFs to come?

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has hinted at support for a futures-based ETF in the past. However, Gensler and the SEC, in general, have been quite cagey about approving ETFs that offer direct exposure to the asset. The regulator is currently sitting on the top of several ETF applications, and many are hopeful that the next few months will result in decisions.

Gensler said that the ProShares fund has sufficient measures for investor protection. But the SEC Chair and the regulator don’t feel necessarily that way about the other ETF applications. The agency has announced some of the most covered ETF applications, like the VanEck ETF, and it’s not clear when it will offer a decision.

However, given the spate of statements concerning a regulatory framework made in recent months, it appears that the regulator wants to establish rules before making any decisions. The SEC, along with other financial authorities, appears to be inching closer towards regulation.

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Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

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