ProShares Bitcoin Futures ETF Set to Achieve New Record
According to ETF analyst Eric Balchunas from Bloomberg, the ProShares Bitcoin Futures ETF, with the ticker ‘BITO’, has been performing exceptionally well in recent days.
ProShares Bitcoin Futures ETF Doubles in Value
In a recent post, Balchunas highlighted the significant progress that the BITO ETF has made in the past 30 days. During this period, the assets of the ProShares Bitcoin Futures ETF nearly doubled in value, primarily due to market appreciation. However, about $240 million of the volume comes from flows, making it the second-best month for the ETF.
The ETF is on track to break its volume record this week, with approximately $2 billion in assets being traded. Balchunas attributed a significant portion of this surge to the industry-wide anticipation for the approval of a spot Bitcoin ETF by the United States SEC, similar to other digital assets like Bitcoin.
Interestingly, Balchunas noted that once the Bitcoin spot ETF is approved, it is expected to displace offerings like the ProShares Bitcoin Futures ETF.
Bitcoin Futures ETFs issue publicly traded securities that provide exposure to the price movements of Bitcoin futures contracts, according to the CFTC. However, they do not truly reflect the performance of Bitcoin, as they mimic the spot price of Bitcoin.
In contrast, spot Bitcoin ETFs allow investors to trade the price of BTC without owning a wallet, Bitcoin address, or privacy keys. This enables investors to gain exposure to the crypto market while avoiding the perceived risks associated with cryptocurrency.
Compared to highly volatile and speculative Bitcoin Futures ETFs, investors are likely to pivot towards spot Bitcoin ETFs once they are launched.
Spot Bitcoin ETF Approval Anticipation
The anticipation for the approval of a spot Bitcoin ETF is building up, and experts are optimistic about the potential timeline. Bloomberg ETF analyst James Seyffart recently projected a 90% chance of approval by January 10. The applications from industry leaders like BlackRock, Fidelity Investments, and VanEck further contribute to the optimism surrounding Bitcoin spot ETFs.
Recent events, such as Grayscale’s victory over the SEC, suggest that there is no excuse for the denial of a proper ETF product. The SEC’s engagement and negotiations with Grayscale have increased expectations for the approval of a spot Bitcoin ETF, which has helped push the price of Bitcoin up by 6.92% for the week, reaching $37,100.97.
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-life applications of blockchain technology and innovations. He aims to drive the general acceptance and worldwide integration of this emerging technology. Benjamin is also passionate about sports and agriculture. Follow him on Twitter and LinkedIn.
The presented content may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author and the publication do not hold any responsibility for your personal financial loss.