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Bitcoin ETF That Debuted On New York Stock Exchange With Much Fanfare Is Now A Big Loser

Bitcoin ETF That Debuted On New York Stock Exchange With Much Fanfare Is Now A Big Loser
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The Bitcoin ETF, which debuted on the New York Stock Exchange, has now crashed

The Bitcoin Futures Trading Fund (ETF) appeared on the New York Stock Exchange (NYSE) just over a month ago causing quite a stir. With greater participation from Wall Street investors, the ProShares Bitcoin Strategy ETF (BITO) began trading on the New York Stock Exchange.

However, after its stunning debut, the ETF went on to become a big loser. The ETF is now one of the 10 worst performers by revenue two months after it went public, with a 30 percent drop, according to Bloomberg Intelligence data analyzed by Athanasius Sarovagis.

ETF trading initially started on October 19. His stake was priced at $40 at the time. At the end of the first day of trading, the trading volume exceeded 1 billion US dollars, making it the second best debut, after the fund that had pre-formation assets. But now, this week alone, BITO is down nearly 9 percent, according to a Bloomberg report.

According to the report, Bitcoin, the world’s largest and oldest cryptocurrency, has lost more than 34% of its value since BITO debuted on October 19. The cryptocurrency peaked at over $68,000 per coin in November and is now significantly lower. The fund also set a new record by attracting $1 billion in assets in just two days.

However, Psarofagis claims that the current performance of the ETF will not necessarily have an impact on the future growth of the industry. Emphasizing this fact, Securities and Exchange Commission Chairman Gary Gensler said some other ETFs, too, had a rough start but could still raise assets.

The BITO ETF allows investors to invest in Bitcoins through a forward contract instead of buying them on a cryptocurrency exchange. In other words, instead of buying Bitcoin directly, investors will now be able to invest in a fund that tracks Bitcoin futures. By participating in this new ETF, investors are essentially betting on the increase in the value of the ETF’s shares in the future. Bitcoin is the primary driver of this fund’s stock value.

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