Category: bitcoin etf

Solana gains over 26% in two days — $250 SOL price target next?

Solana gains over 26% in two days — $250 SOL price target next?

Solana (SOL) rallied higher on Oct. 21 as traders shifted focus from Bitcoin (BTC) to the most promising altcoins.Notably, the price of SOL increased by more than 11% to over $196 a token, the highest level since Sept.11. Combined with the gains recorded in the previous 36 hours, SOL was up by as much as 26%. SOL/USD daily price chart. Source: TradingViewCapital rotation in play?A new Bitcoin all-time high price on Wednesday triggered price rallies across the altcoin market as well.For instance, Ethereum’s native token Ether (ETH) posted better intraday profits Wednesday, closing 7.32% higher around $4,170. Today, the second-largest cryptocurrency rallied further to $4,374, just $10 shy of its record high at $4,384 on Coinbase.Conversely, Bitcoin corrected by more than 3.5% to below $65,000. As a result, the ETH/BTC exchange surged by more than 5% to reach an intraday high of 0.06289 BTC.Similarly, SOL’s performance against the U.S. dollar in the last two days came out better than Bitcoin. That prompted SOL/BTC to climb by more than 8% Thursday to hit 0.0026772 BTC, showing that traders rotated capital out of the Bitcoin market to enter the Solana market.SOL/BTC daily price chart. Source: TradingViewBullish pennant triggeredSolana’s latest price rally also appeared as a bullish breakout out of its multi-month consolidation channel.SOL started consolidating sideways inside a Triangle-like trading range after rallying by more than 200% in the August-September period. As a result, the formation of more than two higher lows and lower highs, coupled with a declining trade volume, raised the prospect of the channel being a Pennant.Related: Solana chart ‘bull flag’ eyes $250 despite SOL price down 40% since last weekSince Pennant is typically a trend continuation indicator, their formation on the Solana chart after a massive price rally raised its prospects of sending SOL prices higher. Thus, the breakout from Wednesday now eyes an extended run-up, with its target sitting at length equal to the size of the previous uptrend.SOL/USD daily price chart featuring Bullish Pennant. Source: TradingViewIn other words, the price target for Solana could be as high as $250 before the end of the month. However, a retest of the Pennant’s upper trendline as support would risk invalidating the bullish setup.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Sources Say Valkyrie Bitcoin Strategy ETF Set to Launch on Nasdaq This Week

Sources Say Valkyrie Bitcoin Strategy ETF Set to Launch on Nasdaq This Week

After the Proshares Bitcoin Strategy exchange-traded fund (ETF) listed and smashed records in the first two days of trading, Vaneck’s bitcoin futures ETF was given the green light to start trading next week. Furthermore, sources say that the Valkyrie Bitcoin Strategy ETF is set to launch this week with a possible listing on Friday.
Proshares Bitcoin ETF Smashes Records
October is the month of bitcoin exchange-traded funds as the United States approved the first ETF last week. Proshares Bitcoin Strategy ETF (NYSE: BITO) listed on Tuesday and saw close to $1 billion in volume on its first day of trading.
The following day, BITO continued to perform remarkably and bitcoin (BTC) spot markets tapped a new lifetime price high at $67,017 per unit.

If $BITO keeps up this pace of inflows it wont have any futures left to buy by the end of the month due to pos limits (via rough back of envelope calc w/ @JSeyff ). https://t.co/KauFuaPzhb
— Eric Balchunas (@EricBalchunas) October 21, 2021

In fact, the senior ETF analyst for Bloomberg Intelligence, Eric Balchunas, explained how the bitcoin ETF was one of the fastest in history to capture $1 billion in assets. Balchunas said:
RECORD BREAKER: BITO assets up to $1.1b after today, making it the fastest ETF to get to $1b (2 days) breaking [gold’s] 18 [year] old record (3 days), which is poetically apropos.
Chart shared by senior ETF analyst for Bloomberg Intelligence, Eric Balchunas, on Wednesday.
Two Sources Say Valkyrie Bitcoin Strategy ETF Set to Launch Friday
Balchunas is one source that has said that the Valkyrie Bitcoin Strategy ETF is set to launch this week. In addition to statements from Balchunas, crypto reporter Danny Nelson confirmed with a Valkyrie spokesperson that the fund will begin trading on Friday after it “cleared the final regulatory hurdles.” Bloomberg’s senior ETF analyst also explained the news on Twitter.
“Just got word Valkyrie is changing the ticker back to BTF 🙁 SEC prob wasn’t a fan of BTFD. Also odds [are] growing they will launch tomorrow. Not final yet [though],” Balchunas said.
Then he corrected his tweet and noted that the Valkyrie ETF would list on Friday. “I had said this was launching [tomorrow] it’s actually going to be on Friday. Sorry about that,” the analyst further detailed.

The Valkyrie fund will leverage the ticker symbol “BTF” but there was talk about the company adopting the ticker “BTFD.” Unlike Proshares and Vaneck, the Valkyrie ETF will list on Nasdaq rather than the New York Stock Exchange (NYSE).
Valkyrie’s ETF was originally filed in August and the operating expenses per year are 0.95%, according to the pre-effective amendment filed Wednesday morning.
What do you think about the possibility of Valkyrie’s ETF launching this Friday? Let us know what you think about this subject in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Vaneck Bitcoin Futures ETF Gets Green Light from SEC — Fund to Join Proshares BTC ETF Listing on NYSE

Vaneck Bitcoin Futures ETF Gets Green Light from SEC — Fund to Join Proshares BTC ETF Listing on NYSE

The wealth manager Vaneck will be launching its bitcoin futures exchange-traded fund (ETF) in the United States following the Proshares ETF listing that launched on Tuesday. According to the post-effective filing with the U.S. Securities and Exchange Commission (SEC), the Vaneck bitcoin futures ETF launch is approved to be listed after October 23.
Vaneck’s Bitcoin Futures ETF Is the Second US Fund to Get Approval From Regulators
This week, the Proshares Bitcoin Strategy exchange-traded fund (BITO) launched with a lot of fanfare and the ETFs volume broke records on Tuesday. The following day, bitcoin (BTC) spot markets smashed an all-time price (ATH) at $67,017 per unit. Additionally, the wealth manager Vaneck published its bitcoin futures ETF post-effective filing on Wednesday which indicates that the SEC has green-lighted the listing on NYSE Arca.
The Vaneck post-effective filing approval says the fund is granted to list after October 23, 2021, which means the ETF may list on Monday, October 25, 2021.
The Vaneck Bitcoin Strategy ETF’s ticker will be “XBTF” and the fund leverages cash-settled bitcoin futures contracts. The Vaneck ETF summary details that the fund “does not invest in bitcoin or other digital assets directly.” After the post-effective filing was published, Nate Geraci, the co-founder of The ETF Institute tweeted about the approval. “Vaneck [is] joining the bitcoin futures ETF party next week,” Geraci said.
The Vaneck approval follows the phenomenal market performance Proshares Bitcoin Strategy exchange-traded fund (BITO) saw on Tuesday. Eric Balchunas, the senior ETF analyst for Bloomberg explained on Wednesday that BITO is already “in the top 30% of ETFs by assets and a near-lock to exceed my $750m by end-of-week estimate.”

Vaneck’s Decision to Apply for Bitcoin Futures ETF Followed Gary Gensler’s statements Concerning Futures-Based Funds
Vaneck decided to apply for the Bitcoin Strategy ETF on August 10, following SEC chairman Gary Gensler’s statements that week. At that time, Gensler said he looks forward to regulators reviewing ETFs that are particularly associated with bitcoin futures, he mentioned the U.S. Investment Company Act of 1940 as possibly being sufficient enough for regulation.
Gary Gensler also spoke about the approval of the Proshares bitcoin ETF during an interview with CNBC Tuesday and he said: “Bitcoin futures have been overseen by our sibling agency, the Commodity Futures Trading Commission [CFTC], which I was once honored and proud to serve there and that’s been four years.”
The Proshares and Vaneck bitcoin futures ETF approvals mark a milestone for bitcoin-related exchange-traded funds in the United States. For the first time, U.S. investors can participate in an ETF that has some ties to the leading crypto asset bitcoin (BTC).
The U.S., however, is not the first North American ETFs to be approved as Canada has approved a few bitcoin-related ETFs during the last 12 months. While October 23 is a Saturday, the community expects the Vaneck bitcoin futures ETF to list the following Monday on October 25.
What do you think about Vaneck getting approval to list its bitcoin futures ETF in the U.S.? Let us know what you think about this subject in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Grayscale parent company expands GBTC purchase allocation to $1 billion

Grayscale parent company expands GBTC purchase allocation to $1 billion

According to an announcement issued on Wednesday, DCG is now authorized to buy up to $1 billion worth of Grayscale Bitcoin Trust (GBTC).This development extends DCG’s prior authorization by $250 million if they choose to do so. Indeed, DCG has so far purchased $338 million in GBTC, according to the company’s announcement on Wednesday.As previously reported by Cointelegraph, DCG had purchased $193.5 million worth of GBTC shares back in May 2021. At the time, the firm’s GBTC purchase limit stood at $250 million.As part of the announcement, DCG revealed that it plans to use cash on hand to facilitate the purchase on the open market under the provisions enshrined in Rule 10b-8 of the Exchange Act.DCG’s announcement comes on the heels of plans by Grayscale to convert its GBTC product to a Bitcoin (BTC) exchange-traded fund (ETF).However, such plans depend on the United States Securities and Exchange Commission (SEC) softening its stance on Bitcoin ETFs.Related: Grayscale confirms Bitcoin ETF plans and adds exposure to Zcash, Stellar Lumens and Horizen to its trustsSEC chairman Gary Gensler has already spoken in favor of BTC-related ETFs backed by Bitcoin futures rather than those based on the spot price of the cryptocurrency.Gensler’s comments were part of SEC chairman’s remarks on issues raised about the ProShares’ Bitcoin Strategy ETF that made history on Tuesday as the first BTC-related ETF to launch in the U.S. market.Apart from its future Bitcoin ETF plans, Grayscale has also added more cryptocurrencies to its catalog of investment products.Earlier in October, Zcash (ZEC), Stellar Lumens (XM), and Horizen (ZEN) became the latest additions to the firm’s suite of altcoin trusts.Grayscale Investment’s parent company — Digital Currency Group (DCG) — has extended its purchase allocation for the former’s Bitcoin Trust product.

Ethereum nears its own all-time high as ETH price retakes $4K

Ethereum nears its own all-time high as ETH price retakes $4K

Ethereum’s native token Ether (ETH) is likely to hit its own record high in the short term as ETH has broken above $4,000, a crucial resistance level.Ethereum breaks $4,000, nearing new all-time highETH price rallied on Oct. 20 by over 5% to approach $4,100 on the Coinbase exchange for the first time since May 2021. The cryptocurrency’s run-up above $4,000 appeared primarily in the wake of Bitcoin (BTC) breaking above $65,000 to enter price discovery.According to data provided by Crypto Watch, the 30-day correlation between Bitcoin and Ether came out to be 0.81. That shows an 81% linear positive correlation between the two assets.ETH/USD versus BTC/USD daily price action. Source: TradingViewAs a result, Bitcoin’s ability to enter price discovery opens up similar prospects for Ether, which still trades a few hundred dollars below its current all-time high of $4,385.Related: This Ethereum price chart pattern suggests ETH can reach $6.5K in Q4″If BTC broke to new all-time highs, I don’t see why ETH wouldn’t,” commented Rekt Capital, an independent market analyst, adding:”Turn ~$4,000 into support, and ETH will levitate towards $4,400 for a break to new All-Time Highs.”ETH price ascending triangle setupETH’s latest pump boosted its year-to-date profits by almost 450%, compared to Bitcoin’s 130% returns in the same period. That also raised the possibility of Ether posting better gains than Bitcoin in the coming sessions, thereby achieving levels much higher than Rekt Capital’s $4,400-target.On Wednesday, ETH price broke above the Triangle’s upper trendline. Nevertheless, the move upside accompanied lower trading volume, which could see ETH retest the trendline as support in the near term.ETH/USD daily price chart featuring ascending triangle setup. Source: TradingView.comAs Cointelegraph reported earlier, ETH had been painting an Ascending Triangle structure with a $6,500 upside target.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin price eyes $65K breakout as BTC exchanges reserves fall to 2018-lows

Bitcoin price eyes $65K breakout as BTC exchanges reserves fall to 2018-lows

Bitcoin’s (BTC) ongoing price rally above $64,000 has coincided with a substantial drop in its reserves across all exchanges.According to data provided by CryptoQuant — a South Korea-based blockchain analytics service — the amount of Bitcoin held in exchanges’ wallets dropped to as low as 2.379 million BTC earlier this week, the lowest in more than three years. Currently, the reserves are around 2.38 million BTC.Bitcoin’s all exchange reserve. Source: CryptoQuantCryptoQuant noted that the declining Bitcoin reserves showed the availability of fewer BTC tokens “for selling, altcoins purchasing, and margin trading.” Additionally, that also reflected traders’ intention to ‘HODL’ the cryptocurrency.Demand for Bitcoin grows among whales and fishesOn the other hand, the cryptocurrency’s demand appears to have been increasing across retail and institutional traders, with the number of wallets holding more than $100 and $10 million worth of BTC reaching their record high of 16.67 million and 10,510, respectively.Bitcoin addresses with balance greater than $100 and $10 million. Source: Messari, CoinMetricsOn-chain analyst Willy Woo published a report in August 2021 that discussed Bitcoin’s “supply shock” against its rising demand, concluding that the cryptocurrency’s per token worth should be at least $55,000. The “conservative” target remained lower than pseudonymous analyst PlanB’s $135,000 price projection by the end of 2021, based on its stock-to-flow model.$63K✅ https://t.co/tj6SSwSzKR— PlanB (@100trillionUSD) October 19, 2021Meanwhile, PlanB’s Bitcoin price prediction for November 2021 sits around $98,000, above $70,000, the most preferred strike target for the options expiring on the 26th of the same month, as shown in the chart below.BTC Options OI by strike price (expiry Nov 26, 2021). Source: ByBt.comBTC price macro fundamentalsBitcoin’s bullish on-chain fundamentals are likely to see further strength from Wall Street adoption. On Tuesday, ProShares became the first ETP firm to launch a Bitcoin Futures-based exchange-traded fund (ETF) on the New York Stock Exchange. In a milestone for Bitcoin investing opportunities, the listing opened a new road for institutional investors to gain exposure to BTC.For instance, Fundstrat Global Advisors Co-Founder Tom Lee said he anticipated the Bitcoin ETFs to attract at least $50 billion in the coming twelve months, reasserting his team’s year-end $100,000 price target for BTC.Technically, Bitcoin appeared to be heading towards its record high near $65,000, now acting as a resistance level.BTC/USD daily price chart featuring Fibonacci retracement levels. Source: TradingViewOn the flip side, Bitcoin’s relative strength index (RSI), a momentum indicator that analyzes an asset’s overbought/oversold signals, reported the cryptocurrency price as excessively high on the daily candle chart suggesting that a pullback is on the table. Related: Bitcoin sees its highest ever daily close as BTC/Euro pair hits all-time highsShould a correction happen, Bitcoin’s next support target could be near $57,500, which serves as the 78.6% Fib level of the Fibonacci retracement graph, drawn between the $65,000-swing high and the $30,000-swing low. The level also coincides with Bitcoin’s 20-day exponential moving average (the green wave in the chart above). The said level has earlier acted as strong support during Bitcoin’s uptrend. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin Futures ETF Exceeds Expectations, Trades $1 Billion On Day One

Bitcoin Futures ETF Exceeds Expectations, Trades $1 Billion On Day One

The numbers are in, and the Bitcoin Futures ETF had the biggest debut of the year. By far. We have to “exclude ETFs where their Day One volume was literally one pre-planned giant investor or BYOA,” but that’s fair. Apparently, the ProShares Bitcoin Strategy ETF got to the top naturally, via real trades by real people and institutions. Considering that just its approval by the SEC seemed to catapult Bitcoin’s price to the edge of an All-Time High, a question arises. How will the market react tomorrow? And the day after that?
Related Reading | Bitcoin ETF Check, What’s Next For BTC
But let’s avoid speculation and check Senior ETF Analyst for Bloomberg, Eric Balchunas’ charts:

If we don’t exclude ETFs where their Day One volume was literally one pre-planned giant investor or BYOA (not natural), it still ranks #2 overall. Here’s that list. The reason some of these shouldn’t be included IMO is they don’t really represent grassroots interest. pic.twitter.com/wmZiHnpFrS
— Eric Balchunas (@EricBalchunas) October 19, 2021

Considering the first-ever Bitcoin Futures ETF “also traded more than 99.5% of all ETFs,” it’s fair to say the launch was a huge success. What does it mean for the following ETFs? According to Balchunas, it’ll be hard for them to succeed. “Every day counts because once an ETF gets knows as ‘the one’ and has tons of liquidity, it’s virtually imposs to steal.” And, what does this mean for the market in general? NewsBTC already covered this question:
“Although these ETFs have attracted criticism for being backed by futures contracts and not the underlying asset, they could still have big implications for Bitcoin — allowing tax-sheltered and retirement accounts to easily get exposure, and potentially opening the cryptoasset to a much broader audience.”

The NYSE welcomes @ProSharesETF in celebration of the first U.S. Bitcoin-Linked ETF $BITO https://t.co/0qh0NDS2d4
— NYSE 🏛 (@NYSE) October 19, 2021

Why Is There A Bitcoin Futures ETF Instead Of A Bitcoin ETF?
Who better to answer this question than the SEC’s chairman himself, Gary Gensler told CNBC: 
“What you have here is a product that’s been overseen for four years by the U.S. federal regulator CFTC, and that’s being wrapped inside of something within our jurisdiction called the Investment Company Act of 1940, so we have some ability to bring it inside of investor protection.” 
So, the Bitcoin Futures ETF falls under the Commodity Futures Trading Commission jurisdiction. Plus, it tracks the Chicago Mercantile Exchange (CME) Bitcoin futures. And the SEC considers that the institutional support will protect the customer. According to them, the underlying asset, Bitcoin, is too volatile and subject to manipulation.
The first persons to propose a Bitcoin ETF in the USA, the Winklevoss twins, lament that when they did the price of Bitcoin was $68 and nowadays is $64K. “That’s almost a 1000x return in the meantime. I’m glad we got here, but it has taken too long.”

When @cameron and I first proposed a bitcoin ETF in July 2013, the price of bitcoin was $68.
Today, upon the launch of two bitcoin futures ETFs, the price of bitcoin is $64,000.
That’s almost a 1000x return in the meantime. I’m glad we got here, but it has taken too long.
— Tyler Winklevoss (@tyler) October 19, 2021

Also a skeptic of the Bitcoin Futures ETF‘s long term potential, Anthony Bertolino, VP of growth at iTrustCapital, told CNBC:
“The launch of the first bitcoin-linked ETF in the U.S. will bolster the broader crypto market and help an entirely new investor class experience the benefits of bitcoin as a legitimate asset. However, a derivatives-based bitcoin ETF is not where we want to be long-term.”

BTC price chart for 10/20/2021 on Forexcom | Source: BTC/USD on TradingView.com
What Are The ProShares Bitcoin Strategy ETF’s Characteristics?
The next few days will be crucial for this story. There’s a possibility that today’s demand was orchestrated, at least in part. If this happened, it’ll be very obvious in the following days. In any case, the fund’s official site defines the first Bitcoin Futures ETF as:
“ProShares Bitcoin Strategy ETF (BITO) is the first U.S. bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way. The Fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts.”
Related Reading | Grayscale Investments Set to File for Bitcoin Spot ETF as Competition Heats Up
And alerts the clients that “The fund does not invest directly in bitcoin,” and that “The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin.” Forewarned is forearmed.
Featured Image: Screenshot of the ETF’s opening bell ceremony| Charts by TradingView

Gary Gensler Explains Why SEC Approves a Bitcoin Futures ETF

Gary Gensler Explains Why SEC Approves a Bitcoin Futures ETF

SEC Chairman Gary Gensler has shared why the U.S. Securities and Exchange Commission (SEC) decided to approve a bitcoin futures exchange-traded fund (ETF) to trade on the NYSE. Meanwhile, the Commission has not approved a spot bitcoin ETF.
Why SEC Approves Bitcoin Futures ETF
As the first futures-based bitcoin exchange-traded fund (ETF) in the U.S. debuted on the NYSE, the chairman of the U.S. Securities and Exchange Commission (SEC) explained why the regulator greenlighted a bitcoin futures ETF but not a spot bitcoin ETF.
In an interview with CNBC Tuesday, SEC Chairman Gary Gensler reiterated that his agency “should be technology neutral, but not policy neutral.” He elaborated:
What we’re trying to do is ensure to the best we can within our authorities to bring projects into the investor protection perimeter.
“Bitcoin futures have been overseen by our sibling agency, the Commodity Futures Trading Commission [CFTC], which I was once honored and proud to serve there and that’s been four years,” the SEC chief continued.
He added that one of the applications “went effective with regard to those products over at the Chicago Mercantile Exchange [CME] that our sibling agency oversees.”
Responding to a question about why the SEC has approved a bitcoin futures ETF but not a spot bitcoin ETF, Gensler noted that he will not comment on any specific application or project. However, the SEC chief clarified:
What you have here is a product that’s been overseen for four years by a U.S. federal regulator, the CFTC, and that’s being wrapped inside of something that within our jurisdiction called the Investment Company Act of 1940. So, we have some ability to bring it inside of investor protection.

While emphasizing that bitcoin is “still a highly speculative asset class and listeners should understand that underneath this, it still has that same aspect of volatility and speculation,” the SEC chairman concluded: “Our sister agency is overseeing this for four years and then it brings it inside an 80-year-old law here at the SEC.”
The Proshares Bitcoin Strategy ETF, ticker “BITO,” began trading Tuesday on the New York Stock Exchange (NYSE). “The fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts,” its website details, adding that it “does not invest directly in bitcoin.”
What do you think about the SEC approving the first bitcoin-based ETF and Gensler’s comments? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin futures ETF debuts with highest ever first day 'natural' volume of $1B

Bitcoin futures ETF debuts with highest ever first day 'natural' volume of $1B

ProShares’ Bitcoin Strategy exchange-traded fund (BITO) saw the highest ever first day “natural” volume for an ETF, with the figure reaching a little over $1 billion by the end of the opening day.It is second overall, tailing just behind the Blackrock US Carbon Transition Readiness ETF which booked $1.16B in volume on its debut in April. The ProShare’s Bitcoin futures-based ETF launched on the New York Stock Exchange (NYSE) on October 19 with an opening price of $40.88. According to data from TradingView, BITO closed the day at $41.94 with a total of 24.313 million shares changing hands, equating to a first-day volume of just over $1 billion.Commenting on the BITO’s opening day performance, Bloomberg’s senior ETF analyst Eric Balchunas tweeted that ProShares’ ETF was arguably the largest in terms of “natural” or “grassroots interest.” If we don’t exclude ETFs where their Day One volume was literally one pre-planned giant investor or BYOA (not natural), it still ranks #2 overall. Here’s that list. The reason some of these shouldn’t be included IMO is they don’t really represent grassroots interest. pic.twitter.com/wmZiHnpFrS— Eric Balchunas (@EricBalchunas) October 19, 2021Balchunas said Blackrock’s US Carbon Transition Readiness ETF (LCTU) April launch volume was “unnatural” as it was driven by “one pre-planned giant investor.” LCTU’s daily volume also fell off a cliff to between $2 million to $6 million in the days after launch.There were reportedly $570 million worth of inflows for BITO on the first day, suggesting that ProShares’ ETF could rank itself as an industry heavyweight in terms of year-one net flows for a first-to-market single commodity ETF in 12 months.According to data from FactSet, the top two single commodity ETFs leading the pack are Gold and Silver, with year-one flows of $3 billion and $1.7 billion respectively. Outside of commodities, the largest year- one flow for an ETP of $5.351 billion was for the Invesco QQQ Trust.Wondering how big the new bitcoin futures ETFs might get?The white papers we submitted to the SEC last week have some context. For instance, here’s a table of the first year net flows into every first-to-market single commodity ETF (FactSet data).https://t.co/3UnIel6sfX pic.twitter.com/h5Jg6RdgWd— Matt Hougan (@Matt_Hougan) October 18, 2021

While the bullish performance marks a significant milestone for ProShares and the crypto sector, Balchunas warned that it could have consequences for the other firm’s next in line to launch their own Bitcoin (BTC) futures ETFs:“The other result of today is it makes life that much harder for the next in line ETFs to succeed. Time is of the essence. Every day counts because once an ETF gets known as ‘the one’ and has tons of liquidity, it’s virtually impossible to steal.”Related: Buy the rumor… buy the news? BTC price passes $63K as US Bitcoin ETF launchesFollowing ProShares’ ETF launch on Tuesday, U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler outlined in an interview why he, and the SEC, favor ETFs backed by Bitcoin futures as opposed to the spot price of BTC. “BTC futures have been overseen by the SEC’s sister agency, The Commodities Futures Trading Commission, for the past four years. You have something that’s been overseen for the past four years by a federal regulator and it’s also been wrapped up in the SEC’s jurisdiction through the Investment Company Act of 1940,” he said. Valkyrie’s Bitcoin futures-based ETF is set to be the second product to join BITO on the NYSE this week. It cheekily changed its ticker to BTFD, which is slang for Buy The F–ing Dip.

BTC Futures Open Interest Soars Leading up to Bitcoin ETF’s Official Launch

BTC Futures Open Interest Soars Leading up to Bitcoin ETF’s Official Launch

Prior to the launch of the Proshares Bitcoin Strategy ETF (BITO), open interest in bitcoin futures products has been surging since the start of the month, according to data from the Coinbase Institutional arm Skew Analytics. Binance and FTX command the lion’s share of bitcoin futures’ open interest with 40.67% of the market. Moreover, data from bybt.com’s bitcoin futures’ open interest metrics, shows the Chicago Mercantile Exchange (CME) commands 15.54% of all the open interest in bitcoin tallied this week.
Bitcoin Futures Open Interest Has Risen Significantly
On Tuesday, October 19, 2021, the first exchange-traded fund based on bitcoin futures was launched in the United States. So far, Proshares Bitcoin Strategy ETF (BITO) is trading above the ETF’s initial value when the opening bell kick-started trading.
Proshares Bitcoin Strategy ETF (BITO) on its first day of trading at 12:00 p.m. (EST) on October 19, 2021.
Since the first bitcoin ETF is based on BTC derivatives markets, prior to the launch a large influx of bitcoin futures open interest was recorded by a number of analytical web portals.
On October 12, Coinbase Institutional’s Skew Analytics tweeted about the massive open interest stemming from bitcoin futures markets. “Bitcoin futures open interest have been surging since the start of the month,” the official Coinbase Institutional Skew Twitter account said.
Chart shared by the official Coinbase Institutional Skew Twitter account.
Additionally, the account noted that BTC options markets were quite different. “Bitcoin options market seems cautiously positioned ahead of ETF catalysts with skew rallying back to positive territory,” Skew remarked the following day.

Binance, FTX Command 40.67% of Bitcoin Open Interest – CME Group Captures Close to 16%
Data from bybt.com indicates that Binance rules the roost as far as bitcoin futures open interest dominance is concerned. Statistics indicate that Binance commands 23.5% of all the bitcoin open interest among all the BTC derivatives markets trading today.
Total open interest (OI) on October 19, 2021, is 374.98 BTC or $23.57 billion. Data via bybt.com.
Binance has around $5.54 billion recorded, while FTX Exchange captures around $4.05 billion or 17.17%. Open interest (OI) metrics from CME Group have increased as CME now holds the third-largest position in terms of OI. CME has seen a 1.35% increase in OI and metrics show CME commands 15.54% of all the bitcoin futures’ open interest.
CME is followed by bitcoin futures markets such as Bybit, Okex, Deribit, Huobi, and Bitmex. Collectively all five of the mentioned crypto derivatives exchanges command 35.56% of all the bitcoin OI tallied.
What do you think about bitcoin futures’ open interest surging before the bitcoin ETF listed today? Let us know what you think about this subject in the comments section below.

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Binance, Bitcoin, Bitcoin (BTC), Bitcoin derivatives, bitcoin etf, bitcoin futures, BitMex, BTC derivatives, BTC derivatives markets, Bybit, bybt.com, CME, CME Group, deribit, ETF catalysts, ftx, Futures, Huobi, Okex, Open Interest, options, Proshares Bitcoin ETF, Skew Data, trading

Image Credits: Shutterstock, Pixabay, Wiki Commons, Skew Analytics, bybt.com,

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