ProShare’s BITO ETF appreciated 3.19% on its first day, but its value has fallen -6.51% overall, opening at $ 41.94 and currently stands at $ 39.19. In the last 24 hours alone, BITO has fallen by -3.23%. Valkyrie’s BTF, meanwhile, opened at $ 25. Its value increased slightly on opening, however, since then it has continuously fallen, currently valued at $ 24.3. This is a 24-hour difference of -2.80%.
Despite the performance of these SEC-approved Bitcoin futures ETFs so far, they have had a strong positive impact on the cryptocurrency markets. On October 20, the day after the launch of the ProShares BITO ETF, the value of Bitcoin reached a new all-time high (ATH) above $ 66,000.
These new Bitcoin futures-based ETFs are arguably a good thing for the crypto market and community because they are an investment product that helps introduce a new audience (and new capital) to investing in cryptocurrencies. They offer a safer and more attractive option for those who might otherwise be skeptical of investing in alternatives not approved or regulated by the SEC.
The green light for these first ETFs in the United States has also coincided with a large number of new ETF filings with the SEC. As more SEC-approved exchange-traded fund success stories emerge, it is increasingly likely that we will see continued growth in ETF filings for the foreseeable future.
The numbers
The ProShares Bitcoin Strategy ETF rake was $ 3.463 million in four days since its launch. On Friday, the Nasdaq began trading the Bitcoin Strategy ETF de Valkyrie, albeit with a very limited return compared to the ProShares ETF. This second ETF, at the close of its first day, raised $ 73.46 million, just 7.27% more than the proceeds of the ProShares ETF. This comes amid a drop in the price of Bitcoin after its all-time high on Tuesday.
However, the precedent of the first bitcoin ETF is favorable to its ecosystem because it broadens the investor base of that cryptocurrency, even if it is not an ETF directly backed by bitcoin. The Bitcoin Strategy ETF is based on Chicago Mercantile Exchange (CME) bitcoin futures contracts, thus it is an indirect exposure to BTC. Still, you only need to purchase one share of the ProShares ETF for approximately $ 40, or one share of the Valkyrie ETF for $ 25, to invest in Bitcoin through SEC-regulated instruments.
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