Since its launch on October 19, Proshare’s Bitcoin Futures Trading Fund (ETF) has become popular with traders, climbing to the top 2% of all ETFs in terms of total trading volume.
Eric Balchunas, chief ETF analyst at Bloomberg, noted on November 11 that up to $ 400 million in shares of ProShares Bitcoin Strategy ETF (BITO) were sold yesterday, with an average volume that consistently placed it in the top 2% of all mutual funds. . . … shopped.
Over the last nine days, the total supply of BITO amounted to around 112.79 million dollars. While this figure pales in comparison to the first two days of the fund’s listing, when the supply was $ 567.16 million and $ 489.51 million each, Balochunas noted that “such a constant supply is extremely rare” for a recently launched ETF.
Launched on the New York Stock Exchange on October 19, BITO has raised more than $ 1.4 billion in Assets Under Management (AUM) since then. The investor appetite for the fund is still high despite the fact that the price of BITO will not rise, and is currently at 42.3 dollars, just below the original listing price of 43.2 grams. Balchunas suggested that the volume of options may be the driving factor for BITO at this stage.
There seems to be little hope that a Bitcoin ETF will track the approved spot price in the near future, as Balchunas notes that the VanEck spot ETF will definitely return by the US Securities and Exchange Commission (SEC) by the November 14 deadline. The analyst sets the odds 200-1 “dream”.
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On November 10, Lex Gerlach, an investment analyst at ProShares, told US News & World Report that BITO should have no problem with Bitcoin’s price movements, as futures play a key role in determining the spot value:
“There is no single reference price for bitcoins, and the trading price of bitcoins varies from exchange to exchange, often from 1% to 2%, and sometimes from 4% to 5%. Expert research on this topic has shown that the Bitcoin futures market dominates the opening process. “prices”.
“In recent years, bitcoin and bitcoin futures have historically generated very similar returns. Both the correlation and the beta were very close to each other for bitcoins.”