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ProShares Welcomes Bitcoin ETF’s Impact on BITO Futures

ProShares Welcomes Bitcoin ETF's Impact on BITO Futures

ProShares Welcomes Bitcoin ETF's Impact on BITO Futures

ProShares a prominent issuer of futures-based Bitcoin experienced a significant drop of $42,876 in stock prices.

Among the most prominent issuers of futures-based Bitcoin, ProShares stock prices fell by $42,876. An executive at a senior level has stated that exchange-traded funds (ETF) do not face any potential risks that could be associated with the introduction of spot Bitcoin ETFs in the United States.

In an interview on February 2, ProShares global investment strategist Simeon Hyman, stated that the company anticipates benefits for its futures products as a result of the launch of spot Bitcoin exchange-traded funds (ETFs) for both the operational and commercial aspects of the business.

With the introduction of spot Bitcoin exchange-traded funds, the ProShares Bitcoin Strategy ETF (BITO), which is the company’s flagship Bitcoin futures exchange-traded fund, has witnessed “very efficient” trading volumes, according to Hyman.

“We are pretty darn happy with the commercial impact so far,” the executive stated, adding that BITO is trading with two basis points, which is equivalent to 2/100th of a percent off of its underlying value.

“However, we have observed that the spot ETFs have actually experienced an average premium or discount of 36 basis points,” he took note of. In addition to the commercial side of things, ProShares also sees operational benefits stemming from the adoption of spot Bitcoin ETFs.

Spot ETFs are expected to attract more people to the Bitcoin market. The comments made by Hyman are somewhat in line with the trading dynamics of BITO over the past few weeks and months, with the exception of the abnormally massive trading volume days that occurred around January 11th.

“With the entrance of spot ETFs, the futures market is getting better — even better. It was already a well-functioning and regulated place, but it’s actually gotten a little better when with the spot guys because there’s just more people around Bitcoin again.”

These days occurred in the midst of the excitement surrounding the launch of spot Bitcoin exchange-traded funds. According to Yahoo Finance, BITO’s trading volumes reached an all-time high of nearly $2 billion on January 11.

This is in contrast to the typical trading volumes of BITO, which had previously been approximately between $300 million and $600 million. The Bitcoin Investment Trust (BITO) has continued to trade at its usual figures since the launch of spot Bitcoin exchange-traded funds (ETFs), with trading volumes falling to as low as $180 million on February 2.

Earlier, on December 9, 2023 and November 30, 2023, respectively, BITO traded a volume that was very comparable to the current volume, which was $200 million and $120 million, according to database information from Yahoo Finance.

BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust ETF (GBTC) were among the major spot Bitcoin exchange-traded funds (ETFs) that flipped BITO’s trading volumes for the first time last week.

This news came as a result of these activities, before that, BITO was the Bitcoin exchange-traded fund (ETF) that had the highest trading volumes of any other ETF in the world.

ProShares launched BITO in October 2021, making it the first significant futures Bitcoin exchange-traded fund (ETF) in the United States. Unlike a spot Bitcoin ETF, which is designed to track actual Bitcoin holdings, ProShares’ BITO tracks futures contracts as its underlying asset.

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