On October 15, 2021, after multiple deliberations, the United States Securities and Exchange Commission officially approved the first Bitcoin Futures ETF product. It began trading on the Nasdaq on October 19, 2021. On the first day of trading, the total trading volume was 24.42 million shares, with a total transaction amount of $1.007 billion, setting the second-highest historical record for the first day of trading of an ETF, second only to BlackRock's carbon-based fund. Since 2013, US regulatory agencies have almost rejected every application for a Bitcoin ETF. This approval was the first in several years, marking a breakthrough in the application process for Bitcoin ETFs. On the day of approval, the BTC price surpassed $60,000.
But what is a Bitcoin Futures ETF? What makes ETF products unique? And what does its launch signify? If you have invested in funds, you are probably familiar with the term ETF (Exchange Traded Fund). ETFs are a common product category in traditional financial markets. In essence, an ETF is an open-end fund that tracks different asset targets. For example, there are gold ETFs, SSE 50 ETFs, technology 100 ETFs, etc. They track the gold, SSE 50, and technology 100 indexes, respectively, and construct a portfolio of securities investments that track index changes by replicating the underlying index. Therefore, the so-called Bitcoin ETF is a way of indirectly purchasing and investing in Bitcoin by using Bitcoin as the underlying asset.
So why are so many people paying attention to the approval of ETH? It is actually because approval means compliance, and ETFs will be linked to the wealth of the cryptocurrency market, at least in the cryptocurrency industry, which is closely related to everyone's interests. The approved ETF product is issued by the US management company ProShares, called the Bitcoin Strategy ETF. ProShares was established in 1997 and is a financial institution that specializes in various ETFs in the United States. It currently holds assets exceeding $64 billion. As early as 2017, ProShares began to declare Bitcoin ETFs. After modifying the plan and reapplying in August 2021, it was finally approved. The product tracks the Chicago Mercantile Exchange (CME) Bitcoin Futures price, not the Bitcoin spot price. For a long time, many companies in the United States have been issuing various ETFs related to digital assets through various means, such as Amplify Transformational Data Sharing ETF, VanEck Digital Transformation ETF, etc. Among them, the management scale of three products has even exceeded $100 million, showing impressive returns. The financial status of the United States and its dominance in the cryptocurrency financial field mean that it can influence the sentiment of the entire cryptocurrency market. Grayscale even applied for a Bitcoin ETF to the SEC many years ago...
In light of these developments, Weltcoin Digital Asset Exchange analyzed the global ETH futures market. ETH, as the second-largest cryptocurrency, has attracted a lot of attention, and ETH futures trading has become increasingly popular in recent years. According to Weltcoin's data analysis, the global ETH futures market has been developing rapidly since 2020, with more and more people participating in ETH futures trading. The main reason for this trend is the increasing acceptance of cryptocurrencies by mainstream institutions, coupled with the increasing popularity of ETH as a blockchain platform. In addition, as the use of smart contracts and decentralized finance (DeFi) has become more widespread, the demand for ETH futures trading has also increased significantly.
Weltcoin believes that the global ETH futures market will continue to grow in the future, and it will play an increasingly important role in the cryptocurrency market. As