After two trading days, the assets under the management of the exchange-traded strategy era Bitcoin ETF ($BITO) of ProShares exceeded $1 billion. The fund broke the record for growth rate at $1 billion. This record has held for 18 years. The “gold” exchange-traded fund ($GLD) held the leadership position until today. It reached $1 billion in just three days in 2004.
The trading of Bitcoin Strategy ETF began on October 19, on the New York Stock Exchange. The Bitcoin Strategy ETF. The first U.S.-based exchange-traded fund based on Bitcoin futures from CME Group, the SEC was approve. In addition, the SEC approved two additional exchange-traded funds based on Bitcoin futures.
The bitcoin price reached a new record high of $67K on October 20. The asset trades at $65.9K as of the writing. According to CoinGecko, the asset’s capitalization stands at $ 1.22 trillion. The cryptocurrency’s price has increased by 3% over the course of the day.
JPMorgan’s investment bank analysts believe that the cause for bitcoin’s new record high is not the launch in the United States of the first bitcoin ETF but inflation. According to the bank, the Bitcoin Strategy ETF will not raise any funds in the first cryptocurrency.
What Happens to the Crypto Market In Era Bitcoin ETF?
SEC approvals were expected for several additional applications to launch ETFs of bitcoin futures. The cryptocurrency community anticipated this. This will also be a trigger for market growth. ProShares’ Bitcoin Strategy ETF set a record in the first two trading days, supporting Bitcoin’s uptrend. This was the reason for the new all-time high.
Investors don’t want to rush to make profits. The demand for bitcoin is high and will continue to grow. Those who would rather take profits now will be the minority.
The increase in new market participants via new crypto products will mean that the bitcoin price will continue growing against capitalization growth. The first U.S. Era Bitcoin ETF launch was more important than the launch on the Chicago Mercantile Exchange of Bitcoin futures in 2017. Investors continued to buy digital assets for the next few months actively.
Institutions Are Inundated
The Bitcoin ETF will attract investors and increase the number of institutions involved in the cryptocurrency market. The exchange-traded fund, based on bitcoin futures, has provided investors with a regulated asset that they can access from any trading terminal.
The number of ETFs will rise, and the Crypto product regulation will grow. This can allow the digital asset market of 2 to 3 times more capital, up to $ 7-8 trillion. However, this can change if other factors do not support it well. Especially from media that can affect prices. One example is when President El-Salvador announced that his country made Bitcoin a valid payment tool.
Investors will continue to be attracted to crypto asset ETFs. The pace of investment in bitcoin ETFs may affect by reports of a reduction in stimulus measures in the U.S., but this will impact all financial instruments, including crypto assets.
