Sarah Tran
Independent Analyst
- ProShares Bitcoin futures ETF has witnessed tremendous interest from investors as its trading volume reflected over $1 billion on its first day of trading.
- The ETF was highly popular among retail investors, as it acts as a gateway to investing in the new asset class.
- Bitcoin price appears to be ready to record a new all-time high.
The first Bitcoin exchange-traded fund made its debut on the New York Stock Exchange (NYSE) on October 19, with immense interest. The ProShares Bitcoin Strategy ETF (BITO) witnessed over $1 billion in trading volume on its first day.
Retail investors show great interest in ProShares Bitcoin ETF
In the first 20 minutes of its launch, the ETF traded over $280 million worth of shares and eventually recorded over $1 billion in trading volume when the market closed on October 19. The shares of the ProShares Bitcoin ETF closed with an increase of 4.85% at $41.94, from the initial net asset value of $40.
Based on the substantial trading volume of the ProShares Bitcoin Strategy ETF, which is tied to BTC futures contracts, it would rank as the second-biggest ETF debut of all time behind the BlackRock US Carbon Transition Readiness ETF.
Nadig noted that the exceptional trading volume was largely dominated by retail investors, given the few large block trades usually dealt by institutional investors. He added that the new Bitcoin ETF is an access vehicle for certain investors in the marketplace, with many participants who are not willing to hold the new asset class directly.
Bloomberg ETF analyst Eric Balchunas highlighted that the ProShares Bitcoin ETF trading volume witnessed the largest day-one of any ETFs in terms of “natural volume,” meaning that the fund did not receive any seed capital.
Balchunas further indicated that another Bitcoin ETF tied to the leading cryptocurrency’s futures could begin trading later this week. The Valkyrie Bitcoin Strategy ETF changed its ticker to BTFD, as the firm updated its filing earlier this week.
Bitcoin price nears price discovery
Bitcoin price continues to travel higher as it slowly climbs toward its previous all-time high. Trending steadily within an ascending parallel channel, BTC appears to be headed for a new record high as buying volume continues to dominate.
The leading cryptocurrency faces little resistance moving forward, and if accompanied by substantial buying pressure, BTC could easily tag its previous all-time high and even target bigger aspirations at $66,888, the topside trend line of the prevailing chart pattern.
BTC/USDT 4-hour chart
Adding credence to the bullish outlook is the Arms Index (TRIN), which suggests that there are currently more buyers than sellers in the market.
The middle boundary of the parallel channel acts as immediate support for Bitcoin price at $63,046. The second line of defense for BTC is at the 20 four-hour Simple Moving Average (SMA) at $61,842, then at the 50 four-hour SMA at $59,656, which sits near the lower boundary of the chart pattern at $59,274.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.