Bitcoin Futures ETF first launched in America one year ago. It allowed institutional investors an immersive experience with Bitcoin without actually owning any. Proshares Bitcoin futures (BITO) came ahead of the others and have shown positive performance.
Why Has Proshares Outperformed Other Bitcoin ETFs?
Although, Proshares has fallen 70% against Bitcoin since its launch a year back. BITO recorded a massive inflow of over $1.8 billion last year. Meanwhile, it has only $619 in its reserve at the time of writing.
Intelligence analyst from Bloomberg, James Seyffart, commented on BITO’s performance. He said it still needs to be its best year despite burning $1.2 billion worth of the asset. But for investors who wish to gain experience with Bitcoin, BITO is a rational alternative in the ETF space.
Bitcoin reversed downward following BITO’s launch in 2021. ETF Store President, Nate Geraci, remarked on that note. According to him, BITO’S debut had the worst timing in the history of ETFs.
He said that because its appearance coincided with spot Bitcoin’s price sliding from its all-time high. However, there’s an advantage to that, said Nate. That is, it reduced the adverse effect of surging contracts monthly, given that the fund itself flattened out.
However, the advent of BITO last year was a spot-on improvement in the crypto industry. It was the second most traded ETF with an AUM of $1.1 billion. Interestingly, it has performed seamlessly since its inauguration.
Furthermore, it has two record reflux, having been for twelve months. Also, BITO shadowed spot Bitcoin by only 2 percent.
Investors Are Not Satisfied With BITO
Even with the hallmark of BITO, it is still different from what Bitcoin enthusiasts are after. BITO cannot be held in a wallet like Bitcoins. Hence, investors are looking forward to seeing a spot BTC ETF.
Meanwhile, the Security and Exchange Commission has significantly hindered the establishment of a spot BTC ETF. The agency has refused several offers to create one. SEC stated that it is destitute of measures to safeguard consumers.
Nate added that the gap between BITO and spot Bitcoin could expand further in the months ahead. And this is because the assets underperformed during the downshift market season. But, whenever the crypto market finally gets relief, BITO will soar so high that the negative performance gap between it and BTC will extend.
ETFs offer a range of benefits to investors, including diversification, time and knowledge-intensive functions, and low cost of ownership.
BITO is the only existing Bitcoin ETF in the US market. So, ETFs are the perfect option for large-pocket investors willing to understand cryptocurrency without holding any. BITO gives investors real-time exposure to digital assets while simultaneously saving costs.
At publication time, Bitcoin is worth $19,397 with a market capitalization of $372 billion. Bitcoin’s open interest futures are steep, signaling a Northside price shift.