FinancialCentre’sBroker Anticipates The Bitcoin Futures ETF ‘BITO’ Hauls In $570M of Assets in Stock-Market Debut

London, England, 4th Nov 2021, According to Alex Bergmann broker of FinancialCentre’s, the ETF’s sets increased tenfold within its first trading day. The first-ever bitcoin ETF, backed by bitcoin futures, has amassed $570 million in assets o the first day of trading, demonstrating just how thirsty investors are for wagers on the cryptocurrency.

The broker shares, the fund’s sponsor, announced the level of assets in an emailed notice from a press representative. The ProShares Bitcoin Strategy Fund, which launched Tuesday on the New York Stock Exchange under the ticker BITO, had $20 million of seed capital at the start of the day.

The broker says on its first day of existence, the world’s first exchange-traded fund (ETF) backed by bitcoin futures attracted roughly $570 million in assets, demonstrating just how eager investors are for bets on bitcoin as prices approach a historic high.

Init’s an emailed statement from a press representative. The broker notes that the fund’s sponsor stated that there was a certain amount of assets. The ProShares Bitcoin Strategy Fund, which debuted on the New York Stock Exchange Tuesday under the ticker BITO, had initial seed capital worth $20 million.

According to the broker, the debut also coincided with a record-breaking $1 billion in trading volume, making it the most heavily traded new ETF on record.

The fund’s value rose to $41.94 after stock-market trading, up 4.9% from the initial $40 net asset value.

“This is going to be what we all expected, which is it’ll be an access vehicle for certain participants in the market,” Nadig added. “There are a lot of active participants in the markets who don’t want to cross over into crypto by themselves.”

Bullish signals

The broker claimed that the first-day solid performance suggests a significant amount of money is yet excluded from the crypto market because it’s challenging to get into.

The broker said that the solid first-day showing suggests a large amount of capital is still excluded from the crypto market simply because it’s hard to access.

The sources claimed that the performance suggests that a lot of capital is still left out of the crypto market because it’s challenging to access.

According to him, these conditions are correlated with what he called “altcoins,” which are considered riskier but don’t follow bitcoin’s price patterns. They’re nevertheless getting sucked into the vortex of recent price increases, he said.

“I suspect some people are saying ‘well, my gosh, I can’t buy it on the exchange, so I’ll just go ahead and buy this thing instead,’ “Nadig supposed.

The broker suspects that some investors are buying BITO instead of accessing bitcoin on exchanges.

The sponsor also said that following futures contracts is helpful for interested traders since it’s possible to gain exposure even while prices remain stable (or rather, while they sag).

The representative added that tracking futures allow interested traders to track cryptocurrencies while prices remain stable (at least when they’re sagging).

“Regular folks like us may not be able to get in on the futures market, but if you wanted to trade, that would be an effective way to go about it,” said Joe DiPasquale of BitBull Capital which specializes in cryptocurrency investments.

The broker shares that Joe Dipasquale of BitBull Investment Company, which specializes in cryptocurrency investments, said that regular people like us might not be entitled to trade on the futures market.

According to him, if you wanted to do it effectively, this would be a good way of doing it.

He further added: “Prices for those futures typically track spot prices across major exchanges, so you could get the equivalent of one-day futures pricing without having to wait for a spot bitcoin transaction.”

The representative added that prices on the futures market typically correspond to significant exchange prices, which means you would be able to access one-day futures pricing without even having to go through a spot transaction in bitcoin.

The firm claimed that the ProShares Bitcoin Strategy ETF would make it easier for clients to access bitcoin exposure through a regulated investment vehicle without holding any of their assets directly.

Conclusion:

In conclusion, the broker added that the launch of BITO is a significant step in the entry of institutional investors into the bitcoin futures market. The primary concerns are, i.e., will Bitcoin be affected when/if another ETF launches or if more funds continue to invest in bitcoins in the future? What has led to this increased interest is that some prominent hedge fund managers have invested in bitcoin and created a demand more than supply.

The news about the new ETF has reportedly led to heightened interest in bitcoin. According to one of the brokerage firms, there is more attention on bitcoin due to the launch of BITO, which also saw an increased number of traded shares. The primary concerns are: will BITO be affected when/if another ETF launches or if more funds continue to invest in bitcoin in the future? These concerns can only be answered once the crypto market develops further.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

Source: FinancialCentre’sBroker

Back to top