The first Bitcoin-linked ETF officially launched yesterday on the NYSE and it was definitely a success.
On its very first day Proshares’ $BITO registered a turnover of almost $1Bn, marking the highest natural (not pre-planned) volume ever seen on the first day.
Even if the ETF is not directly backed by bitcoins, but only tracks Bitcoin futures, it can give an easy way for traditional institutions and retail investors to invest in crypto without actually buying it – and in an economy as big as the US, this can mean a huge demand.
Some analysts compare $BITO to gold ETF – $GLD, which also offered investors an easy and cost-effectuve way to get exposure to gold. $GLD launched in 2004, the gold price surged from $400 to over $1900 in 7 years. Now that the gold’s role is increasingly taken over by Bitcoin (among other roles), we can assume that this story might repeat itself, and on a bigger scale.
More crypto futures-based ETFs are to come, the next in line would be Valkyrie fund with a meaningful $BTFD ticker – Buy The Fucking Dip. We cannot but agree 😉