ProShares Bitcoin futures fund in top 2% of all ETFs for volume

ProShares Bitcoin futures fund in tiptop 2% of all ETFs for volume

While BTIO is going from strength to force with a total of $1.4 billion worth of inflows since belatedly Oct, one expert thinks that VanEck's Bitcoin spot ETF has a 200-to-1 chance of being canonical by the SEC.

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ProShares Bitcoin futures fund in top 2% of all ETFs for volume

Since its launch on October. 19, ProShares' Bitcoin (BTC) futures substitution-traded fund (ETF) has been a popular choice with traders, rising to the tiptop two% of all ETFs in terms of total trading volume.

Bloomberg senior ETF annotator Eric Balchunas noted on Thursday that the ProShares Bitcoin Strategy ETF (BITO) had $400 1000000 worth of shares traded on Wednesday, with its average volume consistently putting 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 but a ton merely = 25% turnover in one day- indicating its usage equally a trading tool. moving picture.twitter.com/ukDGeSEa6F
— Eric Balchunas (@EricBalchunas) Nov ten, 2022

BITO has seen roughly $112.79 meg combined inflows over the past nine days. While the effigy pales in comparison to the beginning two days of the fund's listing that saw $567.xvi million and $489.51 million worth of inflows, respectively, Balchunas noted that "this kind of consistent menstruation-age is highly rare" for a newly launched ETF.

BITO launched on the New York Stock Commutation on October. xix and has since accumulated more $one.four billion worth of avails nether management. Investor appetite for the fund remains high although the price of BITO has failed to surge and is currently sitting at $42.three, which is slightly beneath its initial list cost of effectually $43.2. Balchunas suggested that options volume may exist the driving factor backside BITO at this stage.

There seems fiddling hope of a Bitcoin ETF tracking the spot price being approved in the firsthand future, with Balchunas suggesting that VanEck'south spot ETF would near certainly exist knocked back by the United states of america Securities and Commutation Commission on the Sunday, November. 14, deadline. The annotator put 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 driblet 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 ten, 2022

Related: BREAKING: BlockFi files for physically backed Bitcoin ETF

On Wed, ProShares investment strategist Leks Gerlak told U.Southward. News & World Report that BITO should accept no problems with reflecting the value of Bitcoin as futures contracts play a key role in determining its spot value:

"There is no single reference toll for Bitcoin, and the trading price of Bitcoin varies from one substitution to another, often between 1% to 2%, and sometimes past 4% to 5%. Expert research on this topic finds that the Bitcoin futures market place dominates the price discovery process."

"Over the past few years, Bitcoin futures and Bitcoin have historically provided very like returns. Both correlation and beta have been very shut to i to Bitcoin," he added.