ProShares’ Bitcoin Strategy exchange traded fund (BITO), saw the highest first day “natural” volume ever for an ETF. It reached just over $1 billion at the close of the first day.
It ranks second overall, just behind Blackrock US Carbon Transition Readiness ETF, which had $1.16B volume when it launched in April.
ProShare’s Bitcoin futures-based ETF was launched on the New York Stock Exchange on October 19, with an opening price at $40.88. TradingView data shows that BITO closed at $41.94, with a total 24.313,000,000 shares changing hands. This equates to a volume of just under $1 billion.
Eric Balchunas, Bloomberg’s senior ETF analyst, tweeted that ProShares ETF was arguably largest in terms “natural” or “grassroots interest.
It still ranks #2 overall, even if we exclude ETFs whose Day One volume was one pre-planned big investor or BYOA (not naturally), This is the list. These are not representative of grassroots interest and should therefore be excluded from the IMO. pic.twitter.com/wmZiHnpFrS
— Eric Balchunas (@EricBalchunas) October 19, 2021
Balchunas stated that Blackrock’s US Carbon Transition Readiness ETF(LCTU) April launch volume was “unnatural” because it was driven “by one pre-planned giant investor.” LCTU also saw its daily volume fall to $2 million to $6million in the days following launch.
According to reports, $570 million inflows were received by BITO on its first day. This suggests that ProShares could be a leading industry player in terms of year-one net flows from a single commodity ETF.
FactSet data shows that Gold and Silver are the two top single commodity ETFs, with annual flows of $3.7 billion and $3 billion, respectively. The Invesco QQQ trust, which has a $5.351 billion annual flow, was the ETP with the highest year-one flow.
Are you curious about the potential size of the new Bitcoin futures ETFs? We have provided some context in the white papers that we submitted last week to SEC. For instance, here’s a table of the first year net flows into every first-to-market single commodity ETF (FactSet data).https://t.co/3UnIel6sfX pic.twitter.com/h5Jg6RdgWd
— Matt Hougan (@Matt_Hougan) October 18, 2021
Although the bullish performance is a major milestone for ProShares as well as the crypto sector, Balchunas warned it could have implications for the next firm to launch their own Bitcoin futures ETFs.
“The other consequence of today is that it makes it harder for the next line ETFs succeed. It is crucial to act quickly. Every day is important because once an ETF has been deemed ‘the one,’ it’s almost impossible to steal.
Related: Buy the rumor…buy the news BTC prices surpass $63K after US Bitcoin ETF launches
After ProShares’ ETF launch Tuesday, Gary Gensler, chairman of the U.S Securities and Exchange Commission (SEC), explained in an interview why he and the SEC favor ETFs backed Bitcoin futures over the spot price.
“BTC futures are being monitored by the SEC’s sister agency The Commodities Futures Trading Commission for the past four year. He said that you have something that has been monitored for four years by a federal regulator. It’s also been subject to the SEC’s supervision through the Investment Company Act of 1941.”
Valkyrie’s Bitcoin futures ETF will be the second product to join BITO this week on the NYSE. It changed its ticker to BTFD (which is slang meaning Buy The F-ing Dip).
Eileen Wilson –Technology and Energy
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