The Bitcoin ETF Launch Leaves Investors Restless
The crypto market has been waiting for it for a long time. The launch of the two U.S. Bitcoin-linked ETFs has flooded the market with public investments. The launch of these platforms has helped enhance the belief and trust in the crypto market. With the immense performance and success of the strategy ETF of ProShares Bitcoin, the stakes have become higher than ever before. The ProShares Bitcoin was able to accumulate about $1 billion in just a few days. About 3.1 million shares were traded in the Valkyrie Bitcoin ETF which debuted on Friday. 24 million BITO were traded on the Tuesday launch. This led to an increased enthusiasm, sending Bitcoin to a record high level.
Seven more firms are awaiting pending applications for the futures-based ETFs submitted to the Securities and Exchange Commission. The co-founder of a cryptocurrency advisory firm stated that this is a competitive landscape. Grayscale Investments LLP has applied for converting its $40 billion funds of Bitcoin to a physically-backed Exchange Traded Fund that will track the crypto. This structure has not yet been approved by the U.S. Regulators, but it can be a significant game-changer. This trillion-dollar industry is fierce and highly volatile.
The first movers have an advantage over those who are late; grabbing the opportunity at the right time is always the key. First movers get more industry recognition and a better inflow of resources. The same applies to the cryptocurrency market. There might not be room for all nine different futures trading ETFs that deal in the same physical asset. Many analysts believe that BITO will continue attracting more investors than other ETFs that get approval.