The debut of the first two US bitcoin ETFs marks an important milestone. The product of Valkyrie it has dropped slightly in price as the crypto market goes through a correction.
The second exchange-traded fund (ETF) of Bitcoin In the United States, trading began on Friday on the Nasdaq stock market.
Launched by the company Valkyrie, the new fund joins the ETF of ProShares and joins the race to attract traditional investors with an interest in gaining exposure to bitcoins. Denominated ETF Bitcoin Strategy from Valkyrie, the product was launched on the Nasdaq under the symbol BTF.
Similar to the competitor’s product, which was launched Tuesday on the NYSE, the ETF for Valkyrie track the value of futures of Bitcoin of the Chicago Mercantile Exchange (CME). Futures contracts are financial contracts whose value depends on or is derived from the underlying reference asset. In the case of futures of Bitcoin, the underlying reference asset is the flagship cryptocurrency.
The new ETF began trading on the US stock exchange this morning, at an initial price of USD $ 25.5, after receiving approval from the country’s Securities and Exchange Commission (SEC) earlier this week. Leah Wald, CEO of Valkyrie, highlighted:
This Bitcoin Strategy ETF is a huge step forward for this asset class. It enables investors to participate in digital asset markets through a transparent and regulated product that is listed on a trusted market and can be bought and sold as easily as any other investment available today.
A milestone for the cryptocurrency industry
The first futures ETF of Bitcoin from ProShares it debuted earlier this week, under the stock symbol BITO, registering a historic success. In its first two days of trading, the fund posted a trade volume of $ 1 billion, making it one of the top ETFs by trade volume on the NYSE and the first in the history of the exchange to hit the record so quickly.
In fact, the success of the first ETF has been such that it now runs the risk of exceeding the monthly limit of futures contracts per entity set by the CME; although the arrival of other funds could improve this situation.
The overwhelming reception of investors for the first ETF of Bitcoin seems to be a indicative of the deep interest present in the market. While some ecosystem advocates argue that an ideal fund is one backed by Bitcoin spot, the launch of the two futures-linked ETFs may still be a major catalyst for adoption.
After years of waiting, the new ETFs represent the first time that US investors have been able to turn to the stock market for exposure to bitcoins. Tim McCourt from CME commented along these lines:
CME’s approval of Bitcoin futures-based ETFs is a positive development for the broader Bitcoin ecosystem, and a reflection of the strong growth and demand for exposure to Bitcoin from clients.
Valkyrie, based in Nashville, has become the third investment firm to receive the corresponding approval of the SEC to launch a fund of its kind, after ProShares and VanEck. The Futures ETF of Bitcoin the latter will begin trading on Monday, October 25. Regulators have yet to give a verdict on a long list of similar fund proposals.
Valkyrie ETF down slightly on its first day
This week’s milestone boosted the price of Bitcoin to all-time highs. Amid the parade of approval of the first ETFs, Bitcoin reached a record of USD $ 66,900, its best price to date. The main cryptocurrencies on the market also experienced a price increase. Ethereum, the second largest digital asset, imitated Bitcoin registering a record price of USD $ 4,300.
The rally pushed the total market capitalization of digital currencies to an all-time high of $ 2.6 trillion. However, at the time of publishing, the market is going through a price correction. With a decrease of 3% in the last 24 hours, Bitcoin it is trading around $ 61,000. The price of Ether It has also dropped and is around USD $ 3,900.
Meanwhile, the Data of Nasdaq suggest that the ETF of Valkyrie it has not registered as impressive a trade volume as that of its competitor. The product’s share price has dropped slightly since its launch, hitting a low of $ 23.9. During its first day, the ETF ProShares it rose more than 8% above its opening price.
At the time of publishing, the shares of the futures ETF of Bitcoin of of Valkyrie They are trading at USD $ 24.4 with a trading volume of around USD $ 52 million.
Hannah Estefanía Pérez’s version / DailyBitcoin
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