The first Bitcoin ETF (exchange-traded fund) has officially made its debut and received around $1 billion of volume within its first 24 hours.
Indeed, the ProShares Bitcoin ETF, which launched on the New York Stock Exchange with the BITO ticker saw the fund’s price rise from the initial $40 to $41.94 at day close.
The price of Bitcoin (BTC) also surged at the same time, taking its price to a new all-time high of $66,400 at the time of writing.
This was of course met with celebrations from the crypto community.
66K all day. $BTC
— The Wolf Of All Streets (@scottmelker) October 20, 2021
Door opens for new money to enter crypto
Bitcoin ETFs make it easier than ever to gain exposure to this booming industry, without having to worry about the security procedures associated with cryptocurrency exchanges.
Through ETFs, investors can buy or sell their holdings through traditional markets, eliminating the barrier to entry that would otherwise exist.
This has the potential to onboard significant amounts of money from individuals and institutions who were uncomfortable with dealing with native cryptocurrency platforms.
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The first of many more to come?
The launch of this ETF is the first of its kind in the US and perhaps an indication of more to come.
According to ProShares CEO Michael Sapir, “2021 will be remembered for this milestone,” and the ETF will provide “convenient access to Bitcoin in a wrapper that has market integrity” for investors who are uncomfortable dealing with the unregulated cryptocurrency space.
A key point to note is that this ETF gives investors exposure to Bitcoin without them having to hold the underlying asset. Some have speculated that this is perhaps the reason why the SEC didn’t reject the application in the first place.
With BITO’s debut becoming the second-largest ever for an ETF, this is clearly an indication of the massive interest in the crypto industry.
Indeed, with the successful launch of BITO, there are already talks of the next ETF that will get approved.
One that has caught a lot of attention is the spot-based ETF application from Greyscale Investments which is the largest Bitcoin fund in the world today.
Experts remain optimistic that the futures-based ProShares ETF will pave the way for a spot-based product in the future.
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