Slow Bitcoin ETF Debut
The debut of the ProShares Bitcoin Short Strategy ETF (BITI) was about as exciting as watching paint dry. Launching on a Tuesday, it only managed to trade 183,300 shares—less than 1% of the volume that its long counterpart, the ProShares Bitcoin Strategy ETF (BITO), racked up on its launch day in October. Talk about a slow start!
Second Day Surge
Despite its lackluster arrival, BITI picked up speed on day two, like a toddler discovering sugar. Trading volume skyrocketed to 886,200 shares, translating to a hefty $36.2 million in value. According to analyst Eric Balchunas, this represented a 380% increase in trading volume. That’s one impressive sugar rush!
The Art of Shorting Bitcoin
For those unfamiliar, BITI allows investors to take short positions on Bitcoin—essentially betting that the world’s favorite cryptocurrency will drop in value. ProShares’ CEO Michael L. Sapir touted this as a vital tool for investors wanting to hedge against their cryptocurrency assets. Remember, folks: it’s all about getting the most out of ups and downs, like life, your favorite rollercoaster, or the stock market!
Comparisons that Matter
While BITI’s day two number sounds impressive, it does pale in comparison to BITO’s explosive first-day volume of $1 billion. It’s a classic case of “what have you done for me lately?” as BITO now boasts a volume in the top 2% of all ETFs yet has seen a decline of over 50% since it launched. Just goes to show that volatility is the name of the game in crypto!
Criticism from the Experts
Not everyone is throwing confetti for BITI’s performance, though. Bloomberg Intelligence Analyst James Seyffart expressed his surprise at the slow initial trading, noting that BITI had only managed $1 million in volume within the first hour. A rough start could make even the most seasoned investors a little uneasy.
Looking Forward to a Spot Bitcoin ETF
As American traders continue to eye a spot Bitcoin ETF with hopeful eyes, the SEC has been holding the door shut for years now. Commissioner Hester Peirce believes a collaborative effort between industry insiders and regulators might finally lead to success. Until then, it looks like investors will have to ride the waves with ETFs like BITI.
