My favorite ETF reads over the past week, along with my ETF tweet and chart of the week!
(Note: The first U.S.-listed bitcoin futures ETF launched this past Tuesday, with the ProShares Bitcoin Strategy ETF (BITO) debuting to record-breaking demand. That was followed yesterday by the successful launch of the Valkyrie Bitcoin Strategy ETF (BTF). VanEck’s Bitcoin Strategy ETF (XBTF) is expected to begin trading on Monday. With no shortage of media coverage on this historic week in ETFs, I’ve selected just a handful of articles highlighting the pros, cons, impending brutal competition, and bigger picture meaning of it all. Enjoy!)
“If you’re a financial advisor, the news likely brings a combination of excitement, relief, opportunity – and responsibility.”
“Why on earth did the SEC, with a mandate to protect small investors, take this route? It’s time for a proper, spot market-backed bitcoin ETF.”
“Its ability to efficiently track the largest cryptocurrency is questionable anyway because it has to pay to roll over contracts, and the futures curve currently slopes upward.”
“ProShares may be the first to the bitcoin-linked ETF market in the U.S., but it won’t be alone for much longer.”
“There is a bit of euphoria in the industry that we now have an ETF, but it’s the first step.”
“If those competitive forces are unleashed on the trading of digital assets, the days of fat fees for crypto brokers and exchanges (often one-in-the-same) could come to an end.”
ETF Tweet of the Week: ProShares marks the launch of BITO by ringing the bell at the New York Stock Exchange. ProShares CEO Michael Sapir said, “1993 is remembered for the first equity ETF, 2002 for the first bond ETF, and 2004 for the first gold ETF. 2021 will be remembered for the first cryptocurrency-linked ETF”.
— CoinDesk (@CoinDesk) October 19, 2021
ETF Chart of the Week: BITO became the fastest ETF to reach $1 billion in assets, hitting the mark in only two days! The previous record was held by the SPDR Gold Shares (GLD), which took three days to achieve the milestone back in 2004. Bloomberg’s James Seyffart offers the visual…