BITO: First Bitcoin ETF in the U.S. Begins Trading

The SEC yesterday gave the green light to the first Bitcoin ETF in the United States.
The Proshares Bitcoin Strategy ETF (BITO) will begin trading today on the New York Stock Exchange (NYSE) on Oct. 19, 2021.

However, the ETF does not invest directly in bitcoin, but in bitcoin futures. According to Proshares, the ETF currently holds 64 CME Bitcoin futures (BTCV1) and 42 CME Micro Bitcoin futures (BMRV1).

It is a pity that the first Bitcoin ETF in the US invests in Bitcoin futures and not directly in Bitcoin. Due to Contango and Backwardation, the price of the ETF will perform differently than bitcoin itself. Let’s wait and see how it all plays out.

Update 21.10.2021:
The first trading day of the BITO ETF was a complete success. The daily turnover on the first trading day broke almost all records and almost beat the Blackrock US Carbon Transition Readiness ETF.
Meanwhile, the ETF holds 1872.00 CME Bitcoin futures (BTCV1) and 1425.00 November futures (BTCX1), for a total of 3297 Bitcoin futures.

There are more Bitcoin ETFs waiting in the wings for approval.

Potential date of approval:

  • 10/18/2021: Proshares Bitcoin Strategy ETF.
  • 10/25/2021: Valkyrie Bitcoin Strategy ETF
  • 10/19/2021: Invesco Bitcoin Strategy ETF
  • 10/25/2021: VanEck Bitcoin Strategy ETF
  • 01.11.2021: Galaxy Bitcoin Strategy ETF
  • 03.11.2021: Advisorshares Managed Bitcoin ETF
  • 11/28/2021: Bitwise Bitcoin Strategy Fund
  • 12/22/2021: BlockFi Bitcoin Strategy Fund
  • 12/27/2021: Ark 21Shares Bitcoin Futures Strategy Fund
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