Thursday, December 9

First Bitcoin ETF on NYSE Opens in Large Volume

The first Bitcoin ETF was listed on the NYSE this Tuesday (19), making history as one of the 15 largest ever listed on the US stock exchange in its first 20 minutes. In the first session, US$ 1 billion was negotiated with the new product.

This is a novelty awaited for years by Bitcoin fans, who see in this product an important legitimacy of the currency for large investors.

While the debate over investing in ETFs or Bitcoin directly continues in the community, nothing changes the fact that digital currency continues its massive adoption escalation this year 2021.

Indeed, with the doors open for this new development in the world’s biggest power, it is expected that more similar products will appear in the near future. In Brazil, several ETFs are already listed on B3, linked to Bitcoin, Ethereum and cryptocurrency baskets in the market.

With great volume already at inauguration, first Bitcoin ETF debuts on NYSE

It was with joy and enthusiasm that Proshares debuted the $ BITO on Tuesday, directly from the NYSE, which rang the bells at the time of listing, which is common when it happens on that stock exchange.

These bells today marked the beginning of Bitcoin’s history as an investment product on a US exchange.

It is worth noting that Proshares does not work with the purchase and custody of currencies, operating only in Bitcoin futures contracts listed on the CME.

Anyway, after BITO’s listing, trading volume in just 20 minutes was $280 million, putting it in the Top 15 launches on the opening day, according to Bloomberg’s senior ETF analyst, Eric Balchunas.

“BIG NUMBERS: $BITO traded $280 million in shares in the first 20 minutes. This already puts him in the Top 15 opening day releases of all time, more than $GLD AND $QQQ. $ARKX AND $BUZZ were two this year that made the list. It has a legitimate $1 billion shot and first place.”

Hours after the analyst’s speech, this reality was confirmed, with $BITO trading more than $1 billion in its first session.

What changes to Bitcoin with an ETF listing on the stock exchange?

By listing an ETF on the stock exchange, investors who want exposure to that currency, but not directly, can now buy a product linked to it. It is worth noting that Proshares itself warns that the Bitcoin market quotation will always be different from its ETF, as well as the fluctuations in the quotation, since it trades futures.

“The price and performance of bitcoin futures must be different from the current ‘spot’ price of bitcoin.”

Anyway, this served for the price of Bitcoin to explode from quotation on the day, being quoted above US$ 64,000 at the time of writing this article. In relation to the Euro, the Bitcoin price has already reached the historical maximum, reaching €55,066.00, as well as in Australian Dollars (AUD 85,171).

In real, the quotation at R$358,000 puts it far from the R$375,000 reached in April 2021. In Dollars, Bitcoin needs to rise less than 1% to break its historic high in the market.

With the success of the first listing of Bitcoin ETFs, the CVM in the United States is already evaluating new applications so that more options will soon reach those interested in this market. Next Thursday (21), for example, one more product will likely be listed with the $BTFD symbol, known by the Bitcoin community, by the company Valkyrie.