- In a milestone for NYSE, the first ETF tied to Bitcoin is set to begin trading on the exchange.
- ProShares' much-awaited exchange-traded fund linked on Bitcoin futures will expose investors to BTC without holding it. .
- Bitcoin futures open interest has hit an all-time high of over $3.56 billion on CME.
Bitcoin futures open interest hit a peak as the ProShares Bitcoin ETF listing inches closer, expected to debut on Tuesday, October 19. Three more Bitcoin ETFs await a go-ahead from the SEC.
ProShares Bitcoin ETF to debut on NYSE, marking a key milestone
Following the announcement of the ProShares Bitcoin ETF launch, Bitcoin resumed its upward climb. The asset noted its highest weekly close last week, and open interest in Bitcoin futures on Chicago Mercantile Exchange (CME) has exploded.
The dollar value of the open interest in Bitcoin futures on CME hit a peak of $3.64 billion. The previous all-time high of $3.26 billion was recorded during the Bitcoin bullrun of February 2021. Open interest – or the number of Bitcoin futures contracts traded but not yet liquidated – is considered an indicator of institutional interest in BTC.
Activity on the CME noted a spike when the review date of ETF applications arrived. The current statistics indicate massive participation from institutional investors.
Martha Reyes, Head of research at Bequant, reflects on the growing hype around the new Bitcoin ETF:
Speculation about an imminent futures ETF really took off last week as the SEC had been uncharacteristically quiet ahead of the approval deadline for the first of the ETFs on October 18.
The approved Bitcoin ETF is set to invest in futures contracts, similar to the ones on CME, instead of investing in Bitcoin directly. While the approval of the ETF may be considered a milestone for Bitcoin, some experts remain skeptical.
The demand for Bitcoin futures ETFs could be underwhelming and interest a limited audience, since the market currently has traders familiar with direct investment in Bitcoin. The business intelligence firm MicroStrategy has directly invested in Bitcoin from its balance sheet. The gain in the price of their stock (MSTR) has followed a strong correlation with price appreciation in BTC.
SEC documents state that the ProShares Bitcoin Futures ETF will start trading tomorrow, October 19.
SEC documents on ProShares Bitcoin ETF.
FXStreet analysts have evaluated the BTC price trend and predicted that Bitcoin would invalidate bearish theses since the price crossed $58,500.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.