First American Bitcoin (BTC) Exchange Fund has been warmly welcomed recently by the crypto community. I’ve waited years for this development, but the compensatory green light from Securities and Exchange Commission (SEC) Fortunately it did not last.
The first few days it ProShares Bitcoin Futures ETF (BITO) traded in the US, the volume was immediately high. On the first day, this trading volume was more than 1 billion dollars. This volume did not collapse on the second day. Also at that time, the turnover was more than a billion dollars.
This, of course, speaks volumes about the popularity of bitcoin ETFs. Investors had to wait for such an investment product for years, and when the moment finally came, they quickly seized the opportunity.
In fact, the popularity of the ProShares bitcoin ETF is so high that it seems that the maximum number of contracts that can be closed out almost. For October, 1900 contracts have already been concluded and there are only a maximum of 2000 contracts.
November contracts are also quite full. Meanwhile, 1,400 contracts with a maximum amount of 5,000 contracts have already been concluded for the next month.
At first glance, this seems like an excellent development. Demand for exposure to Bitcoin from traditional investors is high. However, the high interest in the Bitcoin futures ETF could have some ill effects.
This can cause the price of the ETF to deviate more and more from the price of Bitcoin. ETF futures are only derived from the price of bitcoin. It does not directly represent the price of Bitcoin.
Eric Balchunas, an analyst at Bloomberg ETF, said recently that he sees the current popularity of the first Bitcoin ETF as a positive development. According to him, it is now difficult to stop the momentum that was generated in the first few days.
“BITO’s unparalleled early size makes it like a snowball rolling down a hill […]”
according to him Will the success of this first ETF also increase the potential adoption of Bitcoin? spot Accelerate future ETFs.