Since its launch on October 19, Proshares’ Bitcoin futures exchange-traded fund (ETF) has been a popular choice among traders, amounting to the top 2% of all ETFs in terms of total trading volume.
Bloomberg’s senior ETF analyst, Eric Balchunas noted on November 11 that the ProShares Bitcoin Strategy (BITO) ETF had $ 400 million worth of shares traded yesterday, with an average volume consistently placing it in the top 2% of all ETFs..
$ BITO and $ BTF both had their biggest volume days in about two weeks. $ BITO with a $ 400m traded, which is not only a ton but = 25% turnover in one day- indicating its usage as a trading tool. pic.twitter.com/ukDGeSEa6F
– Eric Balchunas (@EricBalchunas) November 10, 2021
Both BITO and BTF had their highest volume days in about two weeks. BITO had USD 400 million traded, which is not only one ton but = 25% turnover in one day, indicating its use as a trading tool.
BITO has seen about $ 112.79 million combined entries in the last nine days. Although the figure pales compared to the fund’s first two trading days, which saw inflows of $ 567.16 and $ 489.51 million each, Baluchunas noted that “this kind of steady flow is very rare” for an ETF. Just Launched.
BITO launched on the New York Stock Exchange on October 19 and has since accumulated more than $ 1.4 billion in assets under management (AUM). Investor appetite for the fund remains high, although BITO’s price has failed to rise and is currently at $ 42.3, slightly below its initial listing price of around $ 43.2. Balchunas suggested that option volume may be the driving factor for BITO right now..
There seems to be little hope that a Bitcoin ETF that tracks the spot price will be approved in the foreseeable future., as Balchunas suggested that the United States Securities and Exchange Commission (SEC) would reject VanEc’s spot ETF by the November 14 deadline. The analyst places the odds at a “bleak” 200 to 1.
The SEC has 100 hours left until they have to approve or deny the VanEck spot Bitcoin ETF (my guess is they drop it Friday after mkt close but who knows). While our odds of approval are a bleak 200-1 the denial statement could offer some clues as to when it could happen @JSeyff https://t.co/Y2n3qPAvIp
– Eric Balchunas (@EricBalchunas) November 10, 2021
The SEC has 100 hours left until it has to approve or deny the VanEck Spot Bitcoin ETF (my opinion is that they will withdraw it on Friday after the market close, but who knows). While our passing odds are a grim 200-1, the denial statement might offer some clues as to when it might happen.
On November 10, ProShares investment strategist Leks Gerlak told US News & World Report that BITO should have no problem reflecting the value of Bitcoin, as futures contracts play a key role in determining its spot value:
“There is no single reference price for Bitcoin, and the trading price of Bitcoin varies from exchange to exchange, often between 1% and 2%, and sometimes between 4% and 5%. Expert research on this topic concludes that the Bitcoin futures market dominates the price discovery process. “
“In recent years, Bitcoin and Bitcoin futures have historically provided very similar returns. Both the correlation and beta have been very close to one for Bitcoin.”he added.
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