Key Takeaways
- ProShares Bitcoin ETF hit Wall Street.
- The launch on the New York Stock Exchange comes after the long-awaited green light from the US SEC.
- The first Bitcoin ETF in the US gets strong investor support on launch day.
YEREVAN (CoinChapter.com) — The first Bitcoin (BTC) exchange-traded fund (ETF) in the United States got off to a great start on the New York Stock Exchange on October 19.
After receiving approval from the US Securities and Exchange Commission (SEC), ProShares Bitcoin Strategy ETF went live after the opening bell, throwing the markets into a frenzy.
In no time, the ETF had become the second-highest traded fund in history. Trading under the ticker BITO, the fund saw a massive $280 million traded in the first 20 minutes. This puts it in the top-15 opening day launches of all time.
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Bitcoin goes mainstream through ETFs
While ProShares Bitcoin ETF’s debut in the US marks a turning point in how the cryptocurrency will be viewed, it is not a first for BTC.
At least three countries, Canada, Brazil, and the United Arab Emirates have approved the stock markets to trade in Bitcoin ETFs.
In Canada, the regulatory agency of Ontario approved a Purpose Investments ETF on February 12, 2021. Purpose Bitcoin ETF launched on Toronto Stock Exchange (TSX) under the ticker BTCC. In just two days, its assets under management (AUM) had crossed $421.8 million.
Brazil became the second country globally and the first in Latin America to agree to a Bitcoin ETF. On March 19, the Brazil Securities and Exchange Commission (CVM) approved a Bitcoin ETF by QR Capital. As a result, the fund got listed on B3 (a Bolsa do Brasil), the country’s main stock exchange.
Meanwhile, Canadian asset management firm 3iQ launched another Bitcoin ETF from Dubai (UAE) in June after getting regulatory approval from the authorities. After being in limbo since April, the Bitcoin ETF began trading on the Nasdaq Dubai under the ticker QBTC.
The fact that the launch in the US has received an overwhelming welcome on the stock exchange also proves that the markets approve of a Bitcoin ETF. That is another test the crypto market has passed.
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Strong demand for first Bitcoin ETF
The ETF witnessed an unprecedented demand from investors on its debut. The high-demand launch marks a watershed moment for the crypto industry.
According to Bloomberg, over 18-million Bitcoin ETF shares worth roughly $740 million got traded by midday in New York.
Stephane Ouellette, CEO and co-founder of FRNT Financial was very optimistic about the prospects of the ETFs.
BusinessLive quoted Ouellette saying.
“It looks quite likely the product will see more volume than any other ETF launch in history,”
While James Seyffart of Bloomberg Intelligence called ProShares ETF’s debut the “biggest launch of all time,” Sam Bankman-Fried, CEO of crypto exchange FTX, made a note of the buzz the news has created in the markets.
“It’s an incredibly bullish week — there’s been really positive sentiment around the ETF in particular,”
Sam Bankman-Fried said.
With Bitcoin ETFs now an option in the US, BTC has added another victory feather to its cap. The launch on the New York Stock Exchange, the biggest stock exchange globally, is significant; it is also a slap on the faces of the die-hard Bitcoin critics and skeptics who were in a hurry to write the obituary of Bitcoin and Co.
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Winds of change?
Bitcoin ETFs have created an entirely new group of customers for the biggest cryptocurrency in the world. Traders who have traditionally kept away from Bitcoin (BTC) owing to various risk concerns will now get an opportunity to wet their beaks in the crypto world through the ETF. Without holding any BTC directly, they can bet on or against BITO in the market.
“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,”
Simeon Hyman, global investment strategist at ProShares, told Bloomberg.
ETFStore President Nate Geraci is also optimistic about the changing winds.
“It’s an encouraging sign for the future of crypto to see SEC Chairman Gensler get comfortable in helping mainstream investors more easily access bitcoin exposure. The availability of a bitcoin ETF will now bring more investors under the crypto tent and facilitate greater education across the space.”
CoinDesk quoted Geraci saying.
The better news coming out of this is perhaps that this may not be the only ETF the SEC will approve in the fourth quarter Q4.
Several applications are awaiting approval, like Direxion, First Trust, Grayscale, WisdomTree, and GraniteShares. Others in the line include VanEck Bitcoin Trust, Galaxy Digital Holdings Ltd., and Fidelity Investments.
Once the SEC gives the green light to them as well, BitcoinETFs will be the new normal. But, as of now, it is evident that the news has ushered in the winds of change for Bitcoin and cryptocurrencies at large.
Meanwhile, the news has helped Bitcoin (BTC) skyrocket, crossing its all-time high of April to create a new ATH at $66,1400.
