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The first bitcoin exchange-traded fund (ETF) launched in the United States and broke records on Tuesday, capturing nearly $ 1 billion in total volume. Eric Balchunas, senior ETF analyst for Bloomberg, said the Proshares Bitcoin Strategy (BITO) ETF has definitely “defied expectations.”
Proshares Bitcoin ETF orders large volume
Proshares Bitcoin Strategy’s exchange-traded fund (BITO) performed well on day one, as it closed the day at 4:00 p.m. EDT at $ 41.94 per unit. Meanwhile, the price of bitcoin (BTC) skyrocketed on Tuesday, reaching a high of $ 64,367 on the Bitstamp crypto exchange fifteen minutes after the closing bell on Wall Street.
As ETF shares traded their hands on the New York Stock Exchange (NYSE), BITO hit a daily high of over $ 42. James Seyffart, Analyst at Bloomberg Intelligence tweeted at the end of the day: “Looks like the final tally will be around ~ $ 990 million of trading for BITO on its first day of trading.”
Eric Balchunas, senior ETF analyst for Bloomberg, also tweeted about the action that Proshares’ Bitcoin strategy ETF saw on Tuesday. “BITO about $ 1 [billion] in total volume today (993 million current dollars but transactions continue to flow) ”, Balchunas noted. “By far the most important first day of all ETFs in terms of ‘natural’ volume. He also traded over 99.5% of all ETFs ([including] some big [ones] like DIA, ARKK, SLV). This [definitely] defied our expectations. The analyst added:
If we don’t rule out ETFs where their Day One volume was literally a giant pre-planned or BYOA (unnatural) investor, it still ranks # 2 overall. Here is that list. The reason why some of them should not be included according to the IMO is that they do not really represent the grassroots interest.
While the Proshares bitcoin ETF had a good day, the bitcoin (BTC) spot markets also went wild on October 19. BTC’s market capitalization rose by more than $ 1.2 trillion on Tuesday, and global trading volume was $ 42.4 billion throughout the day.
Balchunas stress that the result of today’s first bitcoin ETF performance in the United States “makes life much more difficult for the success of future online ETFs”. He added: “Every day counts [because] once an ETF obtains [known] like “one” and has tons of [liquidity], it’s practically impossible to fly (see SPY, GLD). ” Balchunas concluded:
What does this mean for the active? I’m guessing about half of that volume will eventually sink for the next couple of days. [Probably] at $ 750 [million] at the end of the week, something like that. Tomorrow’s volume will be interesting and how much it boils down to Earth vs [staying] high.
What do you think of the performance of Proshares Bitcoin Strategy ETF (BITO) on Tuesday? Let us know what you think of this topic in the comments section below.
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