Trading starts for ProShares’ first US Bitcoin-futures ETF

On the New York Stock Exchange (NYSE) under the ticker BITO, ProShares began trading a Bitcoin-futures-based ETF.

Bitcoin, meanwhile, rose to a fresh local high above $63,000.

Like Bitcoin, BITO rose a few percent shortly after listing, but faced selling pressure. The Block researcher Larry Cermak compared the price pattern of the new ETF to the Burj Khalifa.

Notably, shares of MicroStrategy, the bitcoin-focused company, fell 4.5% at the open.

Trading volume of ProShares’ shares in the first 20 minutes exceeded $280 million.

According to Bloomberg analyst Eric Balchunas, the new ProShares instrument entered the top-15 ETFs by most active starts in its first trading session.

October 19, 2021 | 17:32Update:

BITO’s price continued to drift lower in line with the price of the underlying asset.

October 19, 2021 | 19:07Update:

According to journalist Colin Wu, more than two hours after the start of trading, BITO’s trading volume reached $600 million.

As of 11:47 am Eastern Time, BITO opened nearly 2.5 hours with a trading volume of 14.6 million, with an average price of US$41.12 and a transaction value of $600 million.

— Wu Blockchain (@WuBlockchain) October 19, 2021

October 19, 2021 | 20:07Update:

The BITO price largely recovered after the drawdown. Bitcoin moved toward the $63,500 mark.

Earlier, analysts diverged in opinions about the potential impact of the new ETF on Bitcoin’s price.

As reported, the head of Digital Currency Group confirmed plans to convert the Grayscale Bitcoin Trust (GBTC) into an ETF named BTC. To this end, the company has filed the relevant form with the SEC via this form.

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