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- The ProShares Bitcoin Strategy ETF saw big demand when it began trading on Tuesday.
- The bitcoin futures ETF saw more than $700 million worth of shares trade by 1pm.
- Trading under the ticker BITO, it’s on track to be the third-biggest ETF launch of all time.
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The launch of the ProShares Bitcoin Strategy ETF is proving to be a hit with investors amid its first few hours of live trades.
The ETF, which gains exposure to bitcoin via futures contracts rather than owning it outright, saw more than 17 million shares trade hands at a price of at least $40 by early afternoon, making it one of the best ETF launches of all time.
With more than $700 million worth of the ETF traded, the ProShares Bitcoin Strategy ETF is already the fourth-best ETF launch of all time and on track to take at least third place by the end of the day, according to data from Bloomberg.
The launch easily beat the popular Invesco QQQ Trust ETF launch in March of 1999, when $265 million was traded on its first day. The best ETF launch of all time is the BlackRock US Carbon Transition Readiness ETF, which launched in April of this year and saw a one-day turnover of more than $1 billion, according to Bloomberg.
“It [ProShares Bitcoin ETF] has legit shot at $1 billion and top spot,” senior ETF analyst Eric Balchunas tweeted on Tuesday.
And first-year inflows into the fund could exceed $50 billion, according to a Monday note from Fundstrat’s Tom Lee. Such strong demand for the ETF could help drive bitcoin to $168,000, he said.
The ProShares Bitcoin Strategy ETF trades under the ticker symbol “BITO” and has an annual expense ratio of 0.95%. The ETF traded up as much as 5% in Tuesday trades, while bitcoin was up about 1%.
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