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Highlights
- ProShares debuted on the New York Stock Exchange on Tuesday.
- The ProShares’ Bitcoin Strategy exchange-traded fund (BITO) was an instant hit, registering the highest-ever first day volume.
- It is expected that the likes of Valkyrie Bitcoin ETF could see the launch by 25 October.
As ProShares debuted on the New York Stock Exchange on Tuesday, the crypto world has an air of expectation. The ProShares’ Bitcoin Strategy exchange-traded fund (BITO) was an instant hit, registering the highest-ever first day volume for an ETF. It registered figures of over the US $1 billion when the day closed on Tuesday.
ProShares’ price rose to the US $41.94 at the close of stock-market trading, registering gains of 4.9% from its initial price of US $40 net asset value. Proshares’ performance mirrored the performance of Bitcoin on the crypto market as well. On Tuesday, the Bitcoin prices almost touched the US $64,000 and look to break its all-time high of US $64,500, which it had achieved on 14 April.
On Wednesday, too, BTC was trading at the US $64,013.59 with a 24-hour trading volume of US $36,915,438,141. Bitcoin is up 3.03% in the last 24 hours. From the market cap point of view, the BTC market cap stood at the US $1,206,589,281,107.24.
Also read: 7 Altcoins up over 1000% in 2021
So, now that the race of the first Bitcoin ETF launch is over, the race is on to see who will be the second-placed or the third-placed Bitcoin ETF to be launched. At least two more Bitcoin ETFs are slated to be launched later this week and could see three more to be launched in the coming weeks.
Let’s look at the other Bitcoin ETFs that could create further reasons to cheer for the market.
Valkyrie Bitcoin ETFs
Valkyrie’s Bitcoin ETF could well be the second one to be launched, following ProShares in the US. It is anticipated that Valkyrie could begin its trading under the ticker BITO from 25 October. Earlier, on 15 October, the US Securities and Exchange Commission had accepted the registration request for shares of Valkyrie’s Bitcoin Strategy ETF for listing on Nasdaq.
Also read: How rollout of Bitcoin ETF in US could be a watershed moment
Nasdaq’s Vice-President of listing qualifications had confirmed that the exchange has accepted and certified the Valkyrie’s Bitcoin ETF shares. Valkyrie’s Bitcoin ETF is expected to offer indirect exposure to the crypto asset, which will be cash-settled. One can purchase the contract using a Cayman Islands-based subsidiary wholly owned by the fund with exchanges registered with the US Commodity Futures Trading Commission.
VanEck Bitcoin ETF
Another highly anticipated Bitcoin ETF is the VanEck Digital Transformation (DAPP). The ETF is expected to be a small portfolio but well-diversified among stocks of all sizes. The ETF is expected to be a focused portfolio with just 25 holdings, and being another global fund, it will have exposure to broader markets.
Grayscale Bitcoin ETF
This development happened on 19 August as the ProShares market hit the floor. Grayscale Bitcoin Trust had applied with the SEC, wherein it intends to convert its Bitcoin Trust into an ETF rather than focus on creating a futures-linked ETF.
Also read: 'Psychic' Mr Goxx is more than a force to reckon with
GBTC aims to allow the largest Bitcoin product to retain its dominance as a crypto investment vehicle. Unlike an ETF, GBTC is expected to be traded at a discount or premium to their underlying assets. The Grayscale’s ETF would be backed by actual crypto units and not linked via derivatives contracts such as futures.
Bitwise Bitcoin ETF
Bitwise Bitcoin ETF is expected to be a physically backed bitcoin ETF with NYSE Arca. Bitwise’s SEC filing reveals that it would be a trade based on the price of actual bitcoin rather than bitcoin futures. Though SEC is yet to give a green signal, it is indeed one of the highly anticipated Bitcoin ETFs in the near future. The only issue that the SEC feels is that this could lead to market manipulations and study its pros and cons.
Other ETFs performance
Well, if the debut of ProShares’ Bitcoin ETF is anything to go by, then we could see a huge influx of traders venturing into the Bitcoin ETFs. The launch of Bitcoin ETFs is one of the significant developments that the industry has seen, and with this one could see a flock of investors looking to diversify their portfolios without wanting to open a separate profile.
Bitcoin ETFs is indeed a steppingstone as it’s a sign of market maturity and acceptance from the regulator's point of view. Other financial institutions will also find ProShares’ debut as a template or a yardstick in their pursuit to launch Bitcoin ETFs.
