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ProShares optimistic amidst rise of spot Bitcoin ETFs

ProShares

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TL;DR

  • ProShares stays positive despite new spot Bitcoin ETFs, seeing benefits in efficiency and market activity.
  • BITO’s trading remains stable despite a temporary spike, competing with major spot Bitcoin ETFs.
  • ProShares is confident in the future of futures-based Bitcoin ETFs and is committed to delivering innovative solutions.

ProShares, a leading issuer of futures-based Bitcoin exchange-traded funds (ETFs), remains bullish despite the emergence of spot Bitcoin ETFs in the United States.

The company anticipates operational and commercial benefits from the increased adoption of spot ETFs, highlighting the efficiency of its flagship Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO).

Commercial impact and trading dynamics

ProShares’ global investment strategist, Simeon Hyman, emphasized the positive commercial impact of spot Bitcoin ETFs on BITO’s trading volumes. Since the arrival of spot ETFs, BITO has demonstrated efficient trading volumes, with deviations from its underlying value as low as two basis points. 

In contrast, spot ETFs have shown an average premium or discount of 36 basis points. Despite a temporary spike in trading volume coinciding with the launch of spot Bitcoin ETFs on January 11, BITO has since returned to its usual trading figures, ranging between $300 million and $600 million. 

Notably, major spot Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC) briefly surpassed BITO in trading volumes, indicating a shifting landscape.

Operational benefits and increased activity

ProShares anticipates operational benefits from the increased adoption of spot Bitcoin ETFs, particularly in enhancing the futures market, which is already well-functioning and regulated. Hyman noted that spot ETFs have contributed to the overall activity around Bitcoin, signifying a positive development. 

Despite the competition, BITO, launched in October 2021 as the United States’ first substantial futures Bitcoin ETF, maintains its position and remains optimistic about its future amidst the growing interest in the cryptocurrency market.

Future outlook and market dynamics

Despite the emergence of spot Bitcoin ETFs, ProShares remains confident in the resilience and value proposition of its futures-based Bitcoin ETFs. With a focus on operational efficiency and commercial viability, the company believes that the coexistence of spot and futures ETFs can contribute to a more robust and diversified cryptocurrency market. 

As the regulatory landscape continues to evolve and investor interest in Bitcoin grows, ProShares remains committed to delivering innovative investment products that cater to the diverse needs of market participants.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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