ProShares bitcoin futures ETF sees historic nearly $1 billion trading day

Bitcoin • October 19, 2021, 5:20PM EDT
UPDATED: October 20, 2021, 6:27AM EDT
The Block

ProShares' bitcoin futures exchange-traded fund (ETF) listed on the New York Stock Exchange today, and it was welcomed with explosive interest. 

"It absolutely obliterated," said James Seyffart, Bloomberg Intelligence ETF Analyst.

At the time of writing, volumes for the so-called ProShares Bitcoin Strategy ETF (BITO) stood near $1 billion after its inaugural trading day. At last check, volumes stood at $999.473 million. 

Many expected a massive launch, but Seyffart told the Block that the volumes blew away expectations. Bloomberg Intelligence was expecting the product to top the launch of the VanEck Social Sentiment ETF ($BUZZ), according to Seyffart. $BUZZ did more than $400 million on its opening day, but ProShares' $BITO traded nearly twice that.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Seyffart said there were a few main takeaways from the launch outside the high demand for the product in the market. There weren't many block trades, or large orders, he said, which suggests most of the action was dominated by retail.

"The thing traded super tight and was within a penny wide pretty much the entire day," said Seyffart. "And it traded extremely close to the underlying futures and bitcoin itself."

The launch of a bitcoin ETF has been long awaited by the industry. The Securities and Exchange Commission (SEC) has yet to allow an ETF trading spot, but today's launch of a futures product is a huge step for the ETF industry, according to Douglas Yones, Head of Exchange Traded Products at the NYSE.

ProShares is the first to offer a crypto ETF product in the U.S., winning the race to list. Earlier this year, SEC Commissioner Gary Gensler expressed an interest in reviewing crypto proposals for products filed under the Investment Act of 1940 tied to CME bitcoin futures. ProShares was the first to make it to listing, but there are still a number of issuers jockeying for position. These include  Valkyrie, VanEck, Invesco and BlockFi, among others.

For more breaking stories like this, make sure to follow The Block on Twitter.

About Authors

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.
Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].