First ETF Backed by Bitcoin Futures Paused at $570M of Assets

October 20, 2021

First ETF Backed by Bitcoin

The very first exchange-traded fund (ETF) supported by bitcoin futures pulled in some $570 million of resources on its first day of exchanging, an indication of exactly how hungry investors stay for wagers on the digital currency as costs approach a record high.

ProShares Bitcoin Strategy Fund Launched on Tuesday

ProShares, the fund’s sponsor, declared the degree of resources in a mailed notice from a press representative. The ProShares Bitcoin Strategy Fund, which launched on Tuesday on the New York Stock Exchange under the ticker BITO, had $20 million of seed capital toward the beginning of the day.

The fund additionally saw about $1 billion of exchanging volume right off the bat, ProShares stated. That made it the second-most intensely traded new exchange traded fund on record, the firm said, referring to Bloomberg.
The fund’s value rose to $41.94 at the end of stock-market exchanging, up 4.9% from the underlying $40 net resource value. Dave Nadig, boss investment official and director of the exploration of ETF Trends, said that quite a bit of Tuesday’s exchanging volume seemed to come from retail investors.

ETF’s Debut Came as Bitcoin’s Price Rose on Tuesday

The new ETF’s introduction came as bitcoin’s cost flooded Tuesday to a six-month high, moving toward the unequaled high close $65,000 set in April. The first of its sort in the U.S., the ProShares ETF offers investors the opportunity to acquire openness to returns of bitcoin no sweat of purchasing an ETF in a brokerage account.
The U.S. Securities and Exchange Commission (SEC) endorsed the ETF on Friday, and a few other forthcoming ETF proposition could win endorsement from the SEC in the not so distant future. The ProShares ETF is organized to put resources into bitcoin futures contracts traded on the Chicago-based CME, instead of investing in the cryptographic money straightforwardly.

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