Crickets on day 1… but Proshares short Bitcoin ETF volume up 380% on day 2

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ProShares’ first short bitcoin ETF started off very slowly when it launched on June 21, but gained momentum on the second day by increasing trading volume by 380%.

On June 21 launch day, the ProShares Bitcoin Short Strategy exchange-traded fund (BITI) traded short of 183,300 shares, noted ETF analyst at Bloomberg Eric Balchunas in a statement. Tweet was “less than 1% of the volume” $bito This time was on day one.”

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However the next day’s trading volume rose nearly four-fold to 886,200 shares, valued at around $36.2 million, according to Yahoo Finance.

The BITI Exchange Traded Fund (ETF) allows investors to take short positions in the bitcoin market without having to hold BTC themselves. Shorting means anticipating that the value of the market or asset will fall.

ProShares CEO Michael L. Sapir spoke of volumes for the second day as a sign of demand and BITI’s low fee structure.

“The reception BITI is receiving in the market confirms that investors are seeking a convenient and cost-effective ETF to potentially profit or hedge their cryptocurrency holdings when the value of bitcoin declines.”

ProShares also offers the Bitcoin Strategy ETF (BITO), which was launched on October 18th. BITO saw volume of around $1 billion on its first day of trading.

As of November, BITO’s volume was in the top 2% of all ETFs, but has now lost 50.93% of its value since its inception.

Of course $36M is less than the $1B long position on the first day. This could mean that most investors are unsure if there is a further downside from here. In the past 30 days, the largest cryptos by market cap have lost over 30% of their value.

BITI’s relatively poor performance on launch day led to a mockery of CFA at Bloomberg Intelligence James Seifert. On June 21, Seifert tweeted that BITI only traded around $1 million within the first hour of trading.

seafart Told That he expected the opening volume to be low, but “Yeah, that’s not saying it’s surprising. Although I have to admit I’m a little surprised it’s low.”

At close, BITI had volumes of approximately $7.1 million at a daily average price of $39.06 per share.

related: Elusive bitcoin ETF: Hester Peirce criticizes lack of legal clarity for crypto

Australia’s new bitcoin ETF has also struggled to attract interest. In April, the Cosmos Purpose Bitcoin Access ETF (CBTC) was expected to attract $1 billion in inflows. However, it and the launch days of the ETFS 21Shares Bitcoin ETF (EBTC) were delayed until May 12. To date, CBTC has only $810,000 in assets under management while EBTC has $2.8 million.

US traders are still longing for a spot bitcoin ETF, which the Securities and Exchange Commission has denied for years. Commissioner Hester Pearce believes that a bitcoin spot ETF could be launched in the US when industry insiders and regulators collaborate to ensure that the two are on the same page.