The volume is 2nd highest of all time on the first day of trading for an Exchange Traded Fund (ETF).
On Tuesday, ProShares’ Bitcoin Strategy Exchange-Traded Fund (ticker: BITO) recorded the 2nd highest ever first-day volume for an ETF, at around $1 billion.
The Bitcoin futures-based ETF began trading at the New York Stock Exchange with an opening price of $40.88. At closing, it was trading at $41.94 with a total of 24.313 million shares changing hands, as per a Bloomberg report.
Only the BlackRock carbon fund ETF has recorded a higher volume for the first day of trading.
But BlackRock saw such volumes due to pre-seed investments.
Bloomberg analyst Eric Balchunas says that if we go by the logic of ‘natural’ volume, BITO ranks first. He further says that Blackrock’s launch volume was ‘not natural’ as it was driven by “one pre-planned giant investor.”
BITO received approval from the Securities and Exchange Commission just last week.
It tracks bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME), rather than investing in the cryptocurrency directly.
Bloomberg also reported that options on BITO will begin trading on the NYSE Arca Options and NYSE American Options exchanges on Wednesday.
The launch of a Bitcoin-based ETF has raised hopes of crypto proponents for official recognition and regulation of the industry. This development also provides investors who are a bit sceptical about digital assets an opportunity to get exposure.
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