Crickets on day 1, but Proshares short Bitcoin ETF volume up 380% on day 2

A screenshot of a video game Bitcoin

Crickets on day 1, but Proshares short Bitcoin ETF volume up 380% on day 2

A slow first day of trading on the short Bitcoin ETF may have been nothing but a slight hiccup in ProShares’ newest product as volumes grew on the second day.

The first short Bitcoin (BTC) exchange-traded fund (ETF) from ProShares got off to a very slow start on its Tuesday launch but gathered pace by increasing trading volume by 380% on day two.

On launch day on Tuesday, the ProShares Bitcoin Short Strategy ETF (BITI) traded a lackluster 183,300 shares, which ETF analyst at Bloomberg Eric Balchunas noted in a tweet was “less than 1% of the volume $BITO had at this time on Day One.”

However, the next day’s trading volume jumped nearly four times to 886,200 shares, worth about $36.2 million, according to Yahoo Finance.

The BITI exchange-traded fund allows investors to take short positions on the Bitcoin market without holding BTC themselves. Shorting means speculating that the value of a market or asset will fall.

ProShares CEO Michael L. Sapir talked up the volume on day two as indicative of demand and the low fee structure of BITI:

By close, BITI had done about $7.1 million in volume at a daily average price of $39.06 per share.

Australia’s new Bitcoin ETFs have also struggled to attract interest. In April, the Cosmos Purpose Bitcoin Access ETF (CBTC) was expected to attract $1 billion in inflows. However, it and the ETFs 21Shares Bitcoin ETF (EBTC) launch days were delayed until May 12. To date, CBTC only has $810,000 assets under management, while EBTC has $2.8 million.

American traders still yearn for a spot Bitcoin ETF, which the United States Securities and Exchange Commission has denied for years. Commissioner Hester Pierce believes a Bitcoin spot ETF can be launched in the U.S. when industry insiders and regulators cooperate closer to ensure that both are on the same page.

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