A year ago, the United States launched its first Bitcoin futures ETF, allowing institutional investors to gain exposure to Bitcoin. The Proshares Bitcoin Futures ETF (BITO) was the first to launch on the market and offers relatively strong performance compared to its peers.
However, since its last launch, the fund has been below the 70% drag tolerance in BTC prices.Last year, the BITO ETF received cumulative inflows of over $1.8 billion, and is now at $619 million. There is only one left. Bloomberg Intelligence analyst James Seyfert said:
“This year has been a bad year — we see $1.2 billion burned. But if you just want exposure to Bitcoin, at least in the US, BITO is the best option in the ETF world.”
However, since the launch of the BITO ETF last year, Bitcoin has been on a significant downward trend. Nate Geraci, president of advisory firm The ETF Store, said:
“BITO is one of the most ill-timed ETF launches in history, with its debut almost perfectly coinciding with Bitcoin’s spot price high. The flattening of the futures curve has minimized the negative impact of monthly rolling contracts.”
Proshares Bitcoin Futures ETF Shows Relatively Good Performance
The launch of BITO last year was a milestone for the cryptocurrency industry. This marks his $1.1 billion in AUM, making him the second most traded Bitcoin fund to date. Operationally, BITO’s performance is near-perfect. Also, in the past 12 months since launch, he has only been expelled from BITO twice. Since launch, BITO has fallen just 2% below Bitcoin’s spot price.
However, the BITO ETF is not exactly what BTC aficionados are looking for. This ETF does not allow fans to hold Bitcoin directly. As a result, the industry is desperate for a Bitcoin ETF to hit the market. However, the SEC has rejected the left and right proposals, citing a lack of consumer protection measures.
Coming to BITO, Geraci believes the gap between BITO’s spot price and BTC’s performance could widen in the coming months.he Added:
“The bottom line is that BITO is still underperforming, even in a very harsh crypto winter.” We expect a widening negative performance gap between .Meanwhile…not yet.No, Spot.Bitcoin.ETF”.
Bitcoin is currently trading at $19,397 and has a market capitalization of $372 billion.of Open Interest in Bitcoin Futures is currently very high, suggesting price movements to the north.
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