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THE FIRST SHORT BITCOIN ETF FROM PROSHARES GOT OFF TO A SLOW START

THE FIRST SHORT BITCOIN ETF FROM PROSHARES GOT OFF TO A SLOW START


ProShare

The first short Bitcoin ETF from ProShares started very slowly in its launch on June 21 but rallied to increase trading volume by 380% on the second day.


On the day of its launch on June 21, ProShares Bitcoin Short Strategy Exchange-Traded Fund (BITI) traded 183,300 shares in deficit when Bloomberg ETF analyst Eric Balchunas tweeted that it was “less than 1% of the volume the $ BITO he had at the time. Day One. ”


However the trading volume the next day jumped almost four times to 886,200 shares worth about $ 36.2 million according to Yahoo Finance.



The BITI (ETF) trading platform allows investors to take short positions in the Bitcoin market without holding BTC on their own. Depreciation means predicting that the market price or property will decrease.


ProShares chief executive Michael L. Sapir spoke of volume on the second day as an indication of demand and the structure of the BITI low cost.


BITI

"Accepting the BITI you find in the market confirms the need for simple and inexpensive ETF investors to make a profit or protect their cryptocurrency when bitcoin prices fall."

ProShares also released the Bitcoin Strategy ETF (BITO), which was launched on October 18. BITO saw approximately $ 1 billion in volume on its first trading day.


In November, BITO volume was among the top 2% of all ETFs, but has now lost 50.93% of its value since its inception.


Of course $ 36M is pale compared to the long positions of $ 1B on the first day. This may mean that many investors are unsure if there is anything wrong with this. Over the past 30 days, the largest crypto in terms of market share has lost more than 30% of its value.


BITI inefficiency on launch day drew CFA critics at Bloomberg Intelligence James Seyffart. On June 21, Seyffart wrote on Twitter that during the first hour of trading, BITI had made only about $ 1 million in volume.


Seyffart said he expected the opening volume to be low, but "Yes he does not say it is surprising. Although I have to admit I was surprised that THIS is low. "



Apparently, BITI had made about $ 7.1 million with an average daily value of $ 39.06 per share.



Australia's new Bitcoin ETF has also worked hard to attract interest. In April, the Cosmos Purpose Bitcoin Access ETF (CBTC) was expected to attract $ 1 billion. However, it and the start dates for ETFS 21Shares Bitcoin ETF (EBTC) have been delayed until May 12. So far CBTC has assets of only $ 810,000 under management while EBTC has $ 2.8 million.


American traders are still yearning for the Bitcoin ETF Securities and Exchange Commission which has been refusing for years. Commissioner Hester Pierce believes the Bitcoin spot ETF could be established in the US where industry insiders and regulators work closely together to ensure both are on the same page.

Source: cointelegraph




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