First Bitcoin ETF opens quietly as speculation grows about second approval later this week


Bitcoin’s first US-based Bitcoin ETF made a steady if slightly low-key start to trading after a week of feverish speculation.

ProShares launched the first-ever US bitcoin ETF this afternoon with the ticker symbol “BITO” but trading initially was modest, putting it nicely.

Listed on the New York Stock Exchange (NYSE) BITO rose 1% from US$0.0747 to US$0.0763 with much of the investment action more focused on Bitcoin itself, rather than the associated ETF.

Even so, as the first bitcoin ETF traded in the US it was a watershed moment for the sector, which experts say will potentially open the floodgates for dozens of other crypto ETF approvals.

ProShares CEO Michael Sapir said: “BITO will open up exposure to bitcoin to a large segment of investors who are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider and creating a Bitcoin wallet or are concerned that these providers may be unregulated and subject to security risks.”

Bloomberg ETF analyst Eric Balchunas predicted that another Bitcoin futures contract-based ETF, the Valkyrie Bitcoin ETF, will likely launch later this week.

Balchunas also highlighted that Valkyrie updated its ticker from BTFD to BTF in its application, another sign that a fund is ready for launch.

In October, as well as Valkyrie, there are another two more ETF applications awaiting a SEC decision – be that approval, rejection, or delay – based on the count of Bloomberg Intelligence.

They are the ProShares Bitcoin Strategy ETF and Invesco (NYSE:IVZ) (NYSE:IVZ) Bitcoin Strategy ETF.

READ: ETFs: what are they, how to use them, risks, advantages, and leverage

A decision on VanEck’s ETF has been delayed to 14 November, while the Global X Bitcoin Trust is due 21 November, and word on another Valkyrie product, the XBTO Bitcoin Futures Fund, is now set for 8 December.

WisdomTree Bitcoin Trust’s decision is scheduled for 11 December and Kryptoin Bitcoin ETF’s decision is scheduled for 24 December.

Other bitcoin ETFs awaiting approval include Wise Origin Bitcoin Trust and Grayscale Bitcoin Trust.


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