Thanks to the success of ProShares Bitcoin ETF, the CEO of FTX will not be surprised to see …
The very first U.S. Bitcoin ETF, $ BITO, started trading on the New York Stock Exchange earlier this week with a lot of support and record volumes. He grew by more than 4% when he started. Today, according to the CEO of FTX, this is a “huge step forward” for the industry as a whole.
During a recent maintenance along with CNBC, Sam Bankman-Fried noted that launching a Bitcoin ETF in the United States could pave the way for more structured crypto-investment products to enter the market. This, ideally, will lead to greater institutional interest in the best digital asset on the market.
This could, in fact, be the future of the crypto industry as well. A recent Fidelity study found that 90% of institutional investors surveyed expressed a desire for digital asset investment products. Many see it as a more preferable way to gain crypto exposure, compared to physically holding the assets.
This enthusiasm has undoubtedly contributed to the success of ProShares ETF. The asset crossed $ 1 billion in trading volumes on its first day, making it the second most successful ETF of all time. Several other Bitcoin ETFs are also expected to launch in the coming days. Moreover, even the Valkyrie ETF is expected to start trading on Friday.
Nice look how ridiculous it is $ BITOthe first two days of volume were. Here it is in relation to the next most successful ETF launches of all time. He has doubled one of them, and is in good condition with the growth of the second day (see $ QQQ, $ GLD) Going through @tpsarofagis pic.twitter.com/WLzQt7yD3t
– Eric Balchunas (@EricBalchunas) 21 October 2021
Speaking to CNBC, Bankman-Fried also suggested that this launch could speed up the process of providing a legal framework to the industry. The industry continues to grapple with uncertainty and fear over lack of regulation. He said,
“I wouldn’t be surprised to see more regulation of markets and exchanges, especially on anti-market manipulation.”
An appropriate legal framework will also allow FTX to expand into the United States, where the exchange is currently not operational due to obstacles such as licensing and regulations. The exchange recently raised $ 420 million from 69 investors in a roundtable, leading to a valuation of around $ 25 billion in just two years of existence.
However, this exponential popularity did not translate very well for the ProShares ETF, which has already worn out two-thirds of its total Bitcoin Futures position limits, set at 5,000 contracts.
One solution to solve this problem would be to offer longer contracts. However, this would lead to the risk that the ETF would stray too far from the BTC spot prices.