ProShares Bitcoin ETF Sets Record on Its Debut
On Monday, ProShares Bitcoin Strategy ETF launched on the New York Stock Exchange and made history on its first day. The ETF gained to close at $41.49, 2.5% from its opening $40.88 price. A total of 24.313 million ProShares ETF stocks were traded within the session with a collective volume of $1 billion. Traded as BITO, ProShares ETF is now ranked second on the list of the highest performing debuting ETFs. At the first spot is the Blackrock US Carbon Transition Readiness ETF which had a closing volume of $1.16 billion on its debut in April.
The Rise of Crypto ETFs
Crypto ETFs are becoming popular on the NYSE following months of development and lobbying the SEC to approve them for public trading. Given that the crypto ETFs only expose investors to cryptocurrency and do not give them access to own some, the clamor and applications for crypto ETFs on NYSE increased in the second half of 2021. As confirmed by the SEC, some ETFs have been approved with others pending approval. The government regulatory agency has repeatedly hinted at its readiness to approve crypto ETFs once conditions are met. This is in line with the government’s declaration that it is not going to ban cryptocurrencies but work to regulate them.
Volt Equities created its ETF called Volt Crypto Industry Revolution and Tech ETF and recently secured approval from the SEC. Grayscale also converted its Grayscale Bitcoin Trust into an ETF and added three other assets to provide more exposure to cryptocurrencies. Another important company in the ETF race is Valkyrie Investments Inc. Valkyrie has launched its Bitcoin Futures ETF which may debut this week to become only the second crypto ETF on the stock exchange.
ETFs and Crypto Regulation in The US
Crypto regulation has been a subject across industries in the US recently. There are divided opinions even among politicians and government officials over the best course to take with cryptocurrencies. While some want the government to do all within its powers to bring cryptocurrencies under regulation, some others like the Chamber of Digital Commerce have called for the government to not stifle the industry but guide it towards growth. Many experts believe that the global adoption of cryptocurrencies and digital tokens is now far off. However, more research and discussions will be done to ensure the safety of investors and the government systems.
Chairman of the SEC, Gray Gensler, spoke with journalists after the debut of ProShares. He expressed his opinion on the performance of crypto ETFs on the stock exchange, noting that the government has been keeping up-to-date with bitcoin for over four years. Gensler, a well-recognized crypto supporter, made a call in September for founders and creators of ETFs to approach the SEC for a dialogue.
Other countries will be monitoring the performance of the crypto ETFs on the NYSE to know how best to go about the eventual rise of crypto ETFs across the world.
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