Bitcoin Derivatives ETF Outperforms Forecasts, Trading at $1 Billion on the First Day

The statistics are in, and the Bitcoin Derivatives ETF had the year’s largest launch, by a long shot. We must “remove ETFs whose Day One turnover was simply one pre-planned large buyer or BYOA,” but this is reasonable. The ProShares Bitcoin Strategic ETF appears to have risen to the pinnacle organically, through genuine transactions by legitimate individuals and institutions. Given that the SEC’s clearance appears to drive Bitcoin’s value to the brink of a record peak, the question emerges. What will the market do tomorrow? What about the next day?

“Even if we omit ETFs whose Day One volume was essentially one pre-planned huge buyer or BYOA (not organic), they still come second overall. Some of the items on the list of ETFs, in my opinion, should not be included because they do not truly reflect grassroots interests.” Eric Balchunas (@EricBalchunas) — 2021 October 19th

Given that the first Bitcoin Derivatives ETF “also moved more than 99.5 percent of all ETFs,” the debut was a big success. What does this signify for the ETFs indicated? It will be difficult for them all to prevail, according to Balchunas. “Everyday matters since it’s nearly impossible to hijack once an ETF becomes known as ‘the one’ and has loads of volume.” 

What does this mean for the market as a whole? This question has already been addressed by NewsBTC: “Even though most ETFs have been criticized for being supported by futures contracts rather than the fundamental asset, they might nevertheless have significant consequences for Bitcoin, enabling tax-sheltered and pension funds to easily gain access and possibly opening up the virtual asset to a far wider group.”

The New York Stock Exchange also stated in regards to the ProShares EFT that it is an honor to have the first Bitcoin-linked ETF in the United States. “The NYSE welcomes @ProSharesETF in honor of the first Bitcoin-Linked ETF $BITO in the United States” — NYSE (@NYSE) October 19, 2021

Winklevoss Brothers Initially Pitched A BTC ETF in 2013

“What you find in this is an outcome that has been supervised for 4 years by the U.S. legislative regulator, CFTC, and that is becoming encased within our authority, termed the Investment Company Act of 1940, and as such, we have some capacity to bring it within investor safety,” Gary Gensler told CNBC.

So the Bitcoin Derivatives ETF is regulated by the CME Group. It also tracks CME Bitcoin contracts. And the SEC thinks corporate backing will safeguard customers. They claim Bitcoin is excessively volatile and prone to exploitation.

Regrettably, the Winklevoss brothers proposed a Bitcoin ETF when the price was just $68 and now it is $64,000. That’s practically a 1000x profit. I’m delighted we arrived, but it took too long said Tyler Winklevoss. “The introduction of the debut Bitcoin-linked ETF in the US will support the larger cryptocurrency market and allow a completely new investor group to enjoy the advantages of Bitcoin as a genuine asset,” said Anthony Bertolino, Executive Vice President of Growth at iTrustCapital. But a Bitcoin ETF built on derivatives is not a lengthy solution.”