ProShares Sees No Risk from Spot Bitcoin ETFs, Notes Increased Trading Efficiency
Summary:
ProShares, a major issuer of Bitcoin futures-based ETFs, identifies no adverse implications from the introduction of spot Bitcoin ETFs in the U.S., according to senior executive Simeon Hyman. He highlights that their trading volume patterns remain efficient post the launch of spot Bitcoin ETFs and that they may potentially benefit from the increasing adoption of spot Bitcoin ETFs. Moreover, data reveals the trading volume of prominent spot Bitcoin ETFs like BlackRock's iShares Bitcoin Trust and Grayscale Bitcoin Trust ETF surpassed BITO's last week.
ProShares, a prominent issuer of Bitcoin (BTC) futures-based exchange-traded funds (ETFs), sees no risk or challenges that could arise from the initiation of spot Bitcoin ETFs in the United States, per a senior official's assertion. Simeon Hyman, ProShares’ global investment strategist, stated in a discussion with Cointelegraph that their futures products could actually benefit operationally and commercially from the introduction of spot Bitcoin ETFs.
He expressed satisfaction with the business impact that the ProShares Bitcoin Strategy ETF (BITO) has seen since the advent of spot Bitcoin ETFs. He further added that BITO's trading is just two basis points separate from its fundamental value. However, he noticed an average premium difference of 36 basis points within spot ETFs.
In an operational sense, ProShares anticipates an increase in the adoption of spot Bitcoin ETFs, which could attract more investors to the Bitcoin market. Hyman commented that since the emergence of spot ETFs, the futures market has seen improvement as the spot market grows.
Talking about BITO’s trading trends, barring extensive trading volume recorded around January 11, which coincided with heightened interest following the launch of spot Bitcoin ETFs. On this day, BITO’s trading volume surged to nearly $2 billion, a substantial increase on their regular trading volumes which usually ranged from $300 million to $600 million.
Post the initiation of spot BTC ETFs, BITO maintained its regular trade volumes, with data showing a dip to $180 million on February 2. In the preceding periods, BITO saw similar volumes of $200 million and $120 million on December 9, 2023, and November 30, 2023, respectively.
Interestingly, the trading volumes of significant spot Bitcoin ETFs — such as BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust ETF (GBTC) — outperformed BITO’s volumes last week. Before this, BITO had the highest trading volume amongst all Bitcoin ETFs globally.
BITO was launched in October 2021, and is a pioneering Bitcoin futures ETF within the U.S. It contrasts from a spot Bitcoin ETF, which are designed to track real Bitcoin holdings. As such, ProShares’ BITO traces futures contracts to determine its underlying asset's value.
Published At
2/5/2024 5:20:32 PM
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