ProShares Bitcoin ETF leaves Gold behind after beating 18-year record
ProShares Bitcoin ETF crossed over $1 billion in Assets under Management (AUM) within two days of its listing on 19 October, according to a report by Bloomberg.
Bloomberg Intelligence further revealed that no other exchange-traded fund has ever hit the $1 billion mark in terms of volume this quickly. It ranked BITO as the second “heaviest-traded ETF debut on record.” BITO was right behind BlackRock carbon fund, as the latter was backed by pre-seed investments for its first 24 hours of trading
While BITO was listed at a price of $40, it was trading close to $42.6, at press time.
The BTC futures ETF reportedly saw more than 24 million shares change hands in the first 24 hours. By Wednesday’s close, over 29 million units had been traded, the report found.
Bitcoin and gold are often compared asset classes as a hedge against inflation. This time around, the competition was close.
The first exchange-traded fund (ETF) that tracked the price of gold was SPDR Gold Trust ETF (GLD) in the United States in 2004. GLD hit $1 billion in AUM in just three days. It held that record for 18 years, before being beaten by BITO.
The fastest ETF to ever get to $1b (naturally) was $GLD in 2004. It did it in 3 days. No one has really come that close since. $BITO has $570m after one day a legit shot to at least tie this DiMaggio-esque feat. Here's the fastest in a Missile Command-y looking chart from @JSeyff pic.twitter.com/TWU1ZvTA1p— Eric Balchunas (@EricBalchunas) October 20, 2021
Meanwhile, Bitcoin also managed to top its previous ATH after it breached the $67,000-level. In fact, according to JP Morgan Chase’s statement, the asset class’s rally has been supported by inflation worries.
In another update, the Valkyrie Bitcoin Strategy fund is reportedly ready to start trading on 22 October. It will be the second-ever U.S. Bitcoin Futures ETF with Justin Sun, CEO of BitTorrent, as its key investor.
As it will trade on Nasdaq, Sun announced,
I have a bitcoin…and I have an ETF…Boom… BTF… pic.twitter.com/QAvrpBLAf6— Justin Sun 🅣🌞 (@justinsuntron) October 21, 2021
With Invesco ETF out of the race, a total of three Bitcoin ETFs have got the green light. VanEck will likely be listed next week with more funds back in the queue.
VanEck coming shortly after Valkyrie. It's poss we have 5 of these bad boys on the market in next 10-12 days. They will all have their work cut out for them in attempting to slow down $BITO, which with its early big boy volume is like a snowball rolling down hill. pic.twitter.com/mwrwYrfbc1— Eric Balchunas (@EricBalchunas) October 21, 2021