Bitcoin Futures ETF Carnival Retreats Leveraged ETFs Multiplying Victory and Chasing Difficulties

After madness, Bitcoin ETF has returned to calm.

After the launch of the first Bitcoin exchange-traded fund on Wall Street, market funds flooded in. In just 4 trading days, US$1.2 billion of funds flowed into the ProShares Bitcoin Strategy ETF (BITO). This product has successively set several major fund industry records: the world’s fastest fund to exceed 1 billion US dollars; the first day of issuance turnover exceeded 100 million US dollars, the second highest in history. And the second Bitcoin ETF Valkyrie Bitcoin futures ETF after ProShares ETF was listed on the Nasdaq on October 22. The first trading day was also very good, with a trading volume of nearly 80 million US dollars.

However, such achievements did not last long. Since the listing, the fund’s trading volume has opened up and down.

Take the ProShares Bitcoin Strategy ETF as an example. It closed at $43.28 (the highest price was $43.95) on October 20, with a trading volume of 29.87 million shares. Since the 21st, the trading volume has shrunk several times. It closed at $40.58 on October 25, and the trading volume fell to 7.08 million shares. The 27th was even more bleak, closing at $38.06, with a trading volume of only 6.527 million shares.


At the same time, as the excitement brought about by the first Bitcoin futures ETF in the United States subsided, a large number of traders chose to take profits at the record highs of Bitcoin, and Bitcoin fell below US$60,000 to a minimum of US$58,000. . As of press time, Bitcoin is quoted at $60,760.


The launch and madness of Bitcoin futures ETFs has made leveraged ETFs ready to take advantage of them.

Valkyrie Investments applied for a Bitcoin futures ETF with 1.25 times leverage to US investors on Tuesday (October 26). The US Securities and Exchange Commission (SEC) has 75 days to respond.

On the same day, Direxion, an ETF issuer, applied to launch a short-selling Bitcoin futures product. The ETF will maintain exposure to short positions in Bitcoin futures contracts issued by the CME exchange, and will not invest directly in Bitcoin. In addition, the ETF may invest in other Bitcoin futures ETFs or money market funds, deposit accounts or short-term debt instruments.

However, the SEC’s attitude towards leveraged ETFs is somewhat contradictory.

According to a report from the Wall Street Journal on October 27, people familiar with the matter revealed that the US Securities and Exchange Commission (SEC) has told at least one asset management company not to continue to advance the plan for leveraged Bitcoin exchange-traded funds (ETFs). The report pointed out that the SEC hopes to restrict new bitcoin-related products to those that provide unlevered exposure to bitcoin futures contracts, such as the previously launched ProShares bitcoin strategy ETF.

Posted by:CoinYuppie,Reprinted with attribution to:
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