[ad_1]
Last month’s approval of the first U.S. Bitcoin exchange-traded fund sparked a fierce battle among new entrants to raise more money, but it also eclipsed existing funds that were already popular with traders. There may be a strong tailwind. Despite new investment options in Bitcoin, the ProShares Bitcoin Strategy ETF (BITO) will bring in net inflows of $129 million by 2024, with total assets of $1.8 billion, according to FactSet. It became a dollar. Even accounting for the dramatic spike in volume in the days immediately following ETF approval, the average number of shares traded per day is higher this year than in the final months of 2023. The fund’s year-to-date total return is 1.25%. His BITO of BITO YTD Mountain ProShares achieved positive returns this year and at the same time brought higher trading volumes and net inflows. “Our trading is going well, the asset is holding up, and we believe this proves the effectiveness of futures-based solutions. And while Bitcoin futures are regulated, spot Bitcoin is not. The fact remains that it has not been done,” Simeon said. Hyman, head of ProShares’ investment strategy group, told CNBC. The increased interest comes despite the fact that the fund has an expense ratio of 0.95%, which is much higher than most spot Bitcoin ETFs, and that tracking futures could cause the fund to diverge from Bitcoin itself. Aniket Ullal, head of ETF data and analysis at CFRA, said one of the reasons futures ETFs continue to be successful is that while Bitcoin futures products have a listed option, physical products do not. He said that’s because there isn’t one. “In other words, the institutional market still cares about the fact that there are options on futures products,” Ural said. Hyman also pointed to the fact that BITO still has a tighter spread to net asset value than spot products as a potential reason for the fund’s continued popularity. The ProShares Futures ETF could also be helped by more activity in the futures market itself. Futures trading volume spiked around the approval and launch of spot ETFs, which may indicate that investors are using futures as a hedge for trades related to the launch. According to CME Group, the average daily trading volume of Bitcoin futures in January was up 65% year-on-year and 34% month-over-month. Futures trading volume has declined since spiking around the approval date, with the daily average from Jan. 22 through the end of the month to roughly the same level as November. “While it is too early to know what impact the approval of the Spot Bitcoin ETF will have on all market participants, we believe this development will be a net positive for the entire cryptocurrency ecosystem. , regulated Bitcoin futures as well as regulated Bitcoin futures as well, continue to hear from customers, said Tim McCourt, global head of financials and over-the-counter products at CME Group. “The value of the entire crypto complex remains an important part of the price discovery process, allowing us to continue to hedge against potentially market-moving events.” statement. To be sure, not all Bitcoin futures products are doing well. VanEck announced on January 17th that it will liquidate its Bitcoin futures ETF. “BITO was kind of the clear winner in the futures space even before the spot product was launched. I think it was because it was launched earlier and probably just from marketing.” [perspective]ProShares has a kind of advantage,” Ural said.
[ad_2]
Source link
