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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
Equiduct
MerQube
ProShares
VanEck
 



 
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