Bitcoin Futures ETF Set To Hit Highest Launch Day Trading Volume

Key Takeaways

• ProShares became the first company to launch a Bitcoin futures ETF.
• The ETF was off to a strong start, racking up more than $500 million in trading volume in under two hours.
• The new offering was on track to become the ETF with the highest opening day trading volume ever recorded.

The ProShares Bitcoin Strategy ETF (NYSE:BITO) debuted on the New York Stock Exchange Tuesday morning. Initial trading volumes showed that it was on target to take the top spot for the highest opening day trading volume ever recorded.

Bitcoin ETF Set to Break Record

Demand for a Bitcoin futures ETF is proving strong.

ProShares’ Bitcoin-linked exchange-traded fund made history yesterday, becoming the first Bitcoin futures ETF to trade on the New York Stock Exchange.

Less than two hours after the opening bell rang, the ETF trading under the ticker BITO, had surpassed $500 million in trading volume. The new ETF is already within the top 15 ETF launches on the New York Stock Exchange and looked set to hit with the highest opening day volume ever recorded for an ETF.

BITO will have had to surpass $1.16 billion in volume within its first trading session to take the top spot. The BlackRock U.S. Carbon Transition Readiness ETF (NYSE:LCTU) currently holds the highest opening day volume after launching earlier this year in April. At the time of writing, ProShares’ Bitcoin futures ETF had already crossed $650 million with more than half of the day remaining.

In the days leading up to the ETF’s launch, opinions were mixed. Many onlookers warned that investors could be reluctant to buy the ProShares ETF because it was backed by Bitcoin futures instead of Bitcoin. On the other hand, trading volumes for Bitcoin futures on the Chicago Mercantile Exchange soared to new highs before the launch, indicating bullish enthusiasm. Judging by initial trading volumes, it appeared the bulls were right, as demand for the ETF was proving to be high.

While the ProShares ETF looked to set a new record, it was likely not the only futures-based ETF to start trading this month. There are currently several similar ETFs awaiting approval, from big players such as Cathie Wood’s Ark Invest, Valkyrie Investments, and global investment manager VanEck (Invesco also applied for a futures-based ETF but has withdrawn its application to focus on securing a Bitcoin ETF).

Whether subsequent Bitcoin futures ETFs will enjoy the same success as ProShares’ remains to be seen. Many investors are still waiting for U.S. regulators to approve a spot-backed Bitcoin ETF, with decisions due later this year.

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