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

Proshares’ Bitcoin futures ETF-traded Fund (ETF), was launched on Oct. 19. It has become a popular choice among traders and has risen to the top 2% in terms of trading volume.

Eric Balchunas, Bloomberg’s senior ETF analyst, noted that ProShares Bitcoin Strategy ETF was worth $400 million and had traded shares yesterday. Its average volume consistently places it among the top 2% of all ETFs.

Both $BITO (with a $400m traded) and $BTF (with a $250m traded) had their highest volume days in approximately two weeks. $BITO traded $400m, which is a lot and also = 25% turnover in one trading day.
— Eric Balchunas (@EricBalchunas) November 10, 2021

Over the last nine days, BITO has received approximately $112.79million in combined inflows. This figure is still quite low compared to the $567.16million and $489.51million inflows, respectively, but Baluchunas said that this kind of consistent flow-age for an ETF newly launched is rare.

BITO was launched on the New York Stock Exchange in October 19th and has since accumulated over $1.4 billion of assets under management (AUM). Despite the fact that the fund is still popular, the current price is $42.3. This is slightly lower than its initial listing price of $43.2.g. Balchunas speculated that BITO’s current stage may be due to options volume.

Balchunas suggests that VanEck’s spot ETF, which tracks the spot price of Bitcoin, would be rejected by the U.S Securities and Exchange Commission (SEC), on the Nov. 14 deadline. There is little chance of this ETF being approved. According to the analyst, the odds of a Bitcoin ETF tracking spot price approval are “bleak” at 200-1.

The SEC still has 100 hours to approve or deny VanEck spot Bitcoin ETF approval. (My guess is that they drop it Friday, 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
— Eric Balchunas (@EricBalchunas) November 10, 2021

Related: BREAKING NEWS: BlockFi files for physically-backed bitcoin ETF

Leks Gerlak, ProShares’ investment strategist, told U.S. News & World Report on Nov. 10 that BITO should not have any issues reflecting Bitcoin’s spot value as futures contracts play a crucial role in determining it.

There is no one reference price for Bitcoin. The trading price of Bitcoin can vary from one exchange to the next, sometimes by as much as 4% to 5%. According to expert research, the Bitcoin futures market is the most important price discovery tool.

“Bitcoin futures and Bitcoin have historically offered very similar returns over the past few years.” He said that correlation and beta are very similar to Bitcoin.