Wall Street opens doors to Bitcoin exchange-traded funds
Fund traded over $ 1 billion on day one

With the listing of ProShares Bitcoin Strategy (BITO) on the New York Stock Exchange on October 19, Wall Street opened its doors to the first exchange-traded Bitcoin fund (BTC). The fund saw more than $ 1 billion in trading volume on its first day, while Bitcoin rose to a new record high of $ 67,000.
The gains did not last long, however, and BTC gave up some gains by the weekend.
Bitcoin price corrected nearly 11% from its all-time high, hitting below $ 60,000 on Saturday, raising concerns about sell-offs that typically occur after large crypto-derivative products are launched on Wall Street.
Analysts are calling for a major BTC correction Nunya Bizniz, an independent market analyst on Twitter, recalled two such major events: the listing of the first Bitcoin futures on the Chicago Mercantile Exchange (CME) and the debut of the shares of the crypto trading service Coinbase (COIN) on the Nasdaq exchange.
It is noteworthy that the CME launched its Bitcoin futures product on December 18, 2017, the day Bitcoin rose to its then record high of around $ 20,000. But the start also marked the beginning of one of the longest Bitcoin bear markets, which bottomed out at $ 3,200 12 months later.
Similarly, the much-acclaimed COIN debut on Wall Street on April 4, 2021 coincided with a Bitcoin rally that hit a new all-time high of $ 65,000 just 10 days later. The move up, however, was met with a series of strong sell-offs that corrected BTC as high as $ 28,800.
As a result, the recent ProShares Bitcoin ETF has worried Nunya Bizniz and many other analysts about the so-called "Buy the rumor, sell the news" correction. Analyst Lark Davis noted that he would "not be surprised" if the Bitcoin exchange rate crashed after the introduction of the ProShares ETF as it did after the introduction of the CME Bitcoin Futures.
Dan Morehead, CEO and Co-Chief Investment Officer of Pantera Capital, also wrote in a newsletter earlier this month that he "might want to take some chips off the table" before the Bitcoin ETF is introduced.
Impressive debut for Bitcoin ETF Despite the historic bear market associated with high profile crypto listings on Wall Street, some analysts believe the Bitcoin ETF's impressive debut will result in limited downward moves in the BTC cash market.
Todd Rosenbluth, director of ETF and mutual fund research at CFRA, told the Financial Times that ProShare's $ 1 billion debut is "a sign of pent-up demand" among traditional financial firms looking to be a part of the emerging Want to secure the crypto industry.
JPMorgan Chase added that only 12% to 15% of net inflows into BITO came from retail investors for the first two trading days.
Related: Bitcoin Decides Fate Of $ 60K As Weekly Closing Keeps BTC Traders On Their Toes
This suggests significant interest in Bitcoin ETFs among institutions, with open interest in Bitcoin cash-margin futures rising as much as 79% since the beginning of the month and the CME base rising from negative levels in July earlier this week has risen over 16%.
Noelle Acheson, head of market insights at crypto trading firm Genesis, noted that while the rolling base of Bitcoin futures, a metric used to measure leverage demand, has increased, it is still only 13.08%. compared to 34.6% in mid-April.
High leverage remains a common factor in recent corrections to the BTC cash market. In other words, the neutral funding rates currently suggest that the likelihood of a major setback is relatively low.
