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.