Značka: ProShares

Interest wanes in Bitcoin futures ETF’s as contracts fall below 5K

After a stellar launch, interest has waned in the ProShares Bitcoin Strategy Exchange Traded Fund (BITO) which now has the lowest amount of CME contracts since Nov. 2021.The Bitcoin futures exchange traded fund (ETF) holds a total of 4,904 Chicago Mercantile Exchange (CME) futures contracts, according to the fund’s latest update from Jan. 11. A Bitcoin futures ETF allows investors to speculate on the future price of Bitcoin (BTC) without having to hold the asset themselves.BITO’s assets under management (AUM) figure has retraced to $1.16 billion from a high of $1.4 billion last Nov. This is about the same amount it held two days after its Oct. 18 launch when it became the fastest fund to reach $1 billion in AUM ever.Arcane Research discussed possible reasons for the BITO retrace in its latest Weekly Update. As you might expect, the poor price performance of BTC over the past two months is the chief explanation, as Bitcoins drifts ever further from the $69,000 it reached on Nov. 10 down to its current price around $43,700. Arcane suggests another explanation for the declining interest in BITO is the high cost that comes with operating a futures-based ETF, with the rolling costs required each month to stay ahead of the current BTC price driving up costs:“BITO sells its front-month exposure to buy the next-month contract each time the contract approaches expiry.”Arcane believes that a spot-based BTC ETF would not be subject to the same high fees that grow over time. The SEC has not yet approved any such ETFs, but a ruling on the filing by Fidelity Investments is scheduled to be made by Jan. 20.Other BTC futures ETFs have also failed to significantly increase their AUMs, which are a fraction of the assets of BITO. Valkyrie’s Bitcoin futures ETF (BTFD), which launched just days after BITO, currently holds $71.9 million. Related: Bitcoin holdings of public companies surged in 2021Although the VanEck Bitcoin Strategy ETF (XBTF) has increased its AUM by $6 million since its Nov. 16 launch, it currently holds just $15.8 million according to Dividend.com.

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First US Bitcoin ETF a ‘dud’ in 2021 as GBTC discount stays near record lows

Bitcoin (BTC) institutional demand is conspicuously wanting at the end of the year as data flags the “underperformance” of the United States’ first Bitcoin futures exchange-traded fund (ETF).As noted by markets commentator Holger Zschaepitz on Dec. 29, the ProShares Bitcoin Strategy ETF (BITO) is now trading at nearly 30% below its launch price.Anticlimax rounds out 2021 for ProShares ETFIn a sign of the times regarding Bitcoin sentiment, the hype that accompanied BITO’s launch in Q3 has died down considerably.Going from record-breaking volume on its first day to its current state, the ETF has even underperformed the embattled Bitcoin spot price in 2021.“The first Bitcoin futures ETF in the US was a dud, at least this year,” Zschaepitz commented.ProShares Bitcoin Strategy ETF (BITO) vs. BTC/USD normalized chart. Source: Holger Zschaepitz/TwitterMeanwhile, as Cointelegraph reported, the Grayscale Bitcoin Trust (GBTC) continues to trade at its biggest-ever discount to Bitcoin spot price, or net asset value.GBTC’s conversion to an ETF, slated for next year, meanwhile, depends on the tone of U.S. regulators regarding spot-based products, these are yet to debut.GBTC price vs. holdings vs. GBTC premium chart. Source: CoinglassEerie all-time highs persist in stocksWhile detractors describe the GBTC discount as “very concerning,” activity from investors themselves does not unanimously point to apathy when it comes to Bitcoin.Related: 5 ways derivatives could change the cryptocurrency sector in 2022Morgan Stanley upped its GBTC allocation this month and last in a sign that longer-term sentiment remains strong. As 2021 draws to a close, the $SPX is nearing a 92-year log-scale resistance line, which has the potential to be a formidable barrier given that it is based off of the index’s 1929 and 2000 peaks. ~ Reuters pic.twitter.com/khK1e09vCA— PiQ  (@PriapusIQ) December 28, 2021Macro markets, meanwhile, display curious characteristics. The S&P 500 is at record highs, challenging a trendline that has marked topside resistance since its inauguration almost 100 years ago.Below the surface, however, all is not as it seems, warnings revealed this week.

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