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NEWSLETTER | 21 Oct 2021  

Bedazzled by bitcoin

I have actually been bedazzled myself and have brazenly borrowed this headline from Tony Sycamore, Financial Markets Analyst APAC at City Index who commented on the news of ProShares’ launch of the first US bitcoin futures-linked ETF this week, with ‘Bitcoin Bedazzles’. 

ProShares’ BITO was so bedazzling that it debuted as the second most heavily traded new ETF on record, with the ETF trading over 24 million shares, representing just short of USD1 billion dollars, ending its launch day with assets of USD570 million – and then went on to break records, raising USD1.1 billion in assets on day two of trading.

Commenting on the launch, BNY Mellon’s Ben Slavin noted that this might be the most ‘grass roots’ support of an ETF launch ever, and also brought us more detail on the Grayscale application to convert to an ETF.

Sycamore echoed many opinions that while the BITO launch is another step towards more widespread digital asset adoption, it might not be as big as some think.

A bitcoin ETF linked to bitcoin futures and not to the physical is not quite what the market wanted. Jan van Eck of VanEck told us earlier this month: “I think it will be a step forward but not revolutionary. What investors in the US want is what exists in Europe and Canada with direct access to bitcoin so there will be slower adoption, but it will be an attractive vehicle for people.” 

Feet back on the ground, we also bring you news of two growing businesses in the ETF and index space this week, interviews with European retail exchange Equiduct, and MerQube, a rising disruptor in the index world.

Both firms are enjoying causing a little disruption. Equiduct’s Wail Azizi tells us that another 200 new products in the form of leveraged and inverse ETPs will be added by the end of the year. 

MerQube’s Vinit Srivastava tells us: “I felt there was a need to have an offering that married the broad technology of today to the world of indexing.” 

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Beverly Chandler, managing editor, ETF Express

Companies in this issue

BNY Mellon

Trackinsight launches thematic ETF classification system and research portal
Wed | 20 Oct 2021, 10:15
Global ETF data provider, Trackinsight, has launched a proprietary classification system for thematic ETFs as part of a dedicated research and analysis portal for investors who are using ETFs to gain exposure to new and evolving trends including demographic shifts, innovative technologies and emerging industries.
BITO hits USD1.1 billion in assets after two days of trading
Thu | 21 Oct 2021, 08:23
After two days of trading, the BITO ETF from ProShares, the first bitcoin-linked ETF in the US, has assets of USD1.1 billion. BITO saw trading volume of over 29 million shares on Wednesday, representing over USD1.2 billion.
Equiduct to expand range of ETF offering in Europe
Mon | 18 Oct 2021, 10:30
European retail exchange Equiduct is expanding its launch into offering ETFs via its Apex platform with another 200 new products in the form of leveraged and inverse ETPs to be added by the end of the year.
ProShares set to launch the first US bitcoin-linked ETF
Mon | 18 Oct 2021, 14:50
US ETF issuer ProShares is set to launch the first bitcoin-linked ETF in the US on 19th October, with the ticker BITO.
MerQube raises more funding bringing Silicon Valley tech to index production
Fri | 15 Oct 2021, 09:31
A new index provider, MerQube, has just gone through its Series A funding round led by J.P. Morgan.
Global ETF launches for 14th to 21st October
Thu | 21 Oct 2021, 09:42
The big launch finally happened this week, after years of speculation.
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