Here Comes The Bitcoin ETF, Winners Take Victory Lap
Still north of the $60,000 levels, Bitcoin trends to the upside fuel by the launch of the first Exchange Traded Fund (ETF) in the United States. The firms that filed their ETF prospectus are celebrating with ProShares at the vanguard.
The investment firm introduced its prospectus this summer. The firm has $53,75 billion in assets under management (AUM) and has persisted, along with others such Valkyrie, Galaxy, Invesco, throughout the years on their Bitcoin ETF petition to the U.S. Securities and Exchange Commission (SEC).
Without opposition from this country’s securities regulator, the Bitcoin ETF ProShares is expected to begin trading tomorrow October 19th, 2021, under the BITO ticker and the BITO.IV Intraday ticker. Bloomberg Intelligence’s Senior ETF expert Eric Balchunas reported rumors on the firm taking a “victory lap” on the New York’s Stock Exchange floor.
ProShares CEO beginning his victory lap in NYT today calls $BITO a "milestone." NYSE's head of ETFs calls it an "exciting step" Rumor has ProShares ringing opening bell at NYSE tomorrow too. As to why NYT insists on calling them "E.T.F.s" I can't answer that one. pic.twitter.com/HZlPHj2JRQ— Eric Balchunas (@EricBalchunas) October 18, 2021
As the expert mentioned the New York Times published an article on the launch of the Bitcoin ETF and ProShares’ celebration. The CEO of this investment firm Michael Sapir told the mainstream media that their product will provide “convenient access” to Bitcoin with “market integrity to new and veteran investors.
The Bitcoin ETF approved by the U.S. SEC will track Chicago Mercantile Exchange (CME) futures contracts. The regulator’s Chair Gary Gensler believes this type of product offers U.S. investors more “protection” rather than a BTC ETF based in the spot market.
Some expert claims the big players in Wall Street will take advantage of the potential contango and subsequent premium in the Bitcoin futures CME contracts. Thus, pricing out the little guy from making a profit. Others argued the opposite, but almost everyone seems to agree on the importance of the event.
The Bitcoin ETF Effect, A Flop Or A Success?
As Balchunas highlighted the Bitcoin ETF launch has been one of the crypto industry’s holy grails with the race to receive approval going back as far as 2013. At the moment, Tyler and Cameron Winklevoss, founders of crypto exchange Gemini, filed the first petition for this product and ranked number 5 in Mad Magazine’s 20 Dumbest Things of 2013.
The Winklevoss' Bitcoin ETF idea was #5 on Mad Magazine's 20 Dumbest Things of 2013… pic.twitter.com/khqxZ20zhE— Eric Balchunas (@EricBalchunas) December 21, 2013
ProShares will take the first bite of a product that some claimed was never going to launch in the U.S., but could soon be accompanied by Valkyrie, Galaxy, and others. Balchunas also mentioned the potential success of the products as Bitcoin continues to trend to the upside in the coming months and more capital is attracted to the crypto market. The expert said:
(…) btc futures ETFs will see $36b (in flows alone!) in first year. Wow. That’s seriously optimistic. I would maybe agree for spot bitcoin fund but not futures. I’m more in the $4-5b range (which would be wildly successful for an ETF that holds derivatives).
At the time of writing, BTC trades at $61,111 with sideways movement in the daily chart.Source