• In a milestone for NYSE, the first ETF tied to Bitcoin is set to begin trading on the exchange.
  • ProShares' much-awaited exchange-traded fund linked on Bitcoin futures will expose investors to BTC without holding it. .
  • Bitcoin futures open interest has hit an all-time high of over $3.56 billion on CME.

Bitcoin futures open interest hit a peak as the ProShares Bitcoin ETF listing inches closer, expected to debut on Tuesday, October 19. Three more Bitcoin ETFs await a go-ahead from the SEC. 

ProShares Bitcoin ETF to debut on NYSE, marking a key milestone

Following the announcement of the ProShares Bitcoin ETF launch, Bitcoin resumed its upward climb. The asset noted its highest weekly close last week, and open interest in Bitcoin futures on Chicago Mercantile Exchange (CME) has exploded. 

The dollar value of the open interest in Bitcoin futures on CME hit a peak of $3.64 billion. The previous all-time high of $3.26 billion was recorded during the Bitcoin bullrun of February 2021. Open interest – or the number of Bitcoin futures contracts traded but not yet liquidated – is considered an indicator of institutional interest in BTC. 

Activity on the CME noted a spike when the review date of ETF applications arrived. The current statistics indicate massive participation from institutional investors. 

Martha Reyes, Head of research at Bequant, reflects on the growing hype around the new Bitcoin ETF:

Speculation about an imminent futures ETF really took off last week as the SEC had been uncharacteristically quiet ahead of the approval deadline for the first of the ETFs on October 18.

The approved Bitcoin ETF is set to invest in futures contracts, similar to the ones on CME, instead of investing in Bitcoin directly. While the approval of the ETF may be considered a milestone for Bitcoin, some experts remain skeptical. 

The demand for Bitcoin futures ETFs could be underwhelming and interest a limited audience, since the market currently has traders familiar with direct investment in Bitcoin. The business intelligence firm MicroStrategy has directly invested in Bitcoin from its balance sheet. The gain in the price of their stock (MSTR) has followed a strong correlation with price appreciation in BTC. 

SEC documents state that the ProShares Bitcoin Futures ETF will start trading tomorrow, October 19. 

SEC documents on ProShares Bitcoin ETF
SEC documents on ProShares Bitcoin ETF.

FXStreet analysts have evaluated the BTC price trend and predicted that Bitcoin would invalidate bearish theses since the price crossed $58,500. 

 

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