When the first Bitcoin ETF was sanctioned by the Securities & Exchange Commission (SEC), it was the biggest thing at that time. Soon after the launch, the Bitcoin ETF Fund of Proshares reached its all-time high on the 10th of November, 2021. But since then the value of the fund is going down and to date has fallen by 39%.
Surely having obtained permission for launching the first Bitcoin ETF-Fund in the US was a big thing for Proshares. Proshares enjoys the honor of being America’s first Bitcoin ETF provider. After Proshares, there was two more Bitcoin that were launched subsequently by Valkyrie and Vaneck. One ETF was Bitcoin Futures and the other was Bitcoin Strategy ETF.
It took not months but years for SEC to finally approve Bitcoin ETF funds at the end of 2021. Prior to allowing Proshares to provide for the ETF, SEC had rejected several ETF applications. So when eventually first Bitcoin ETF was launched in the US, it garnered a huge audience as investors. In less than 24 hours’ time after the launch, Proshares’ ETF saw trade volume exceeding US$ 1 Billion.
By 10th November 2021, Proshares’ ETF reached its all-time high value of US$ 44.29. As of today, however, the situation for Proshares’ ETF has changed a great deal. Since Bitcoin is losing value gradually, therefore, the ETF funds are also losing value. After reaching its all-time high on 10th November, the value of the ETF fund of Proshares has reduced from US$ 44.29 to US$ 26.96. This is approximately 40% lower than what it was on 10th November 2021.
Katherine Greifeld, who is a writer at Bloomberg, describes that ETF hype is slowly fading away. She pointed out that it took less than two days for Proshares ETF to receive more than US$ 1 Billion investment. But now the growth is slowed down considerably perhaps because of the devaluation of Bitcoin, argued Greifeld.
The same situation has been faced by the two other ETF funds of Valkyrie and Vaneck. Both funds reached their all-time high in the month of November 2021. However, both have been trading at a value that is 35 to 40% less than what it was in November last year. Greifeld is of the view that the hype of ETF will return once Bitcoin starts to gain momentum again.