Proshares’ Bitcoin futures fund is in the top 2% of all ETFs in terms of trading volume

Since its launch on October 19, Proshares’ Bitcoin Futures Exchange Traded Fund (ETF) has been a popular choice among traders and ranks in the top 2% of all ETFs in terms of total trading volume.

Eric Balchunas, Bloomberg’s senior ETF analyst, noted on Nov. 11 that ProShares’ Bitcoin Strategy ETF (BITO) saw $ 400 million in stock trading yesterday (Nov. 10), with a consistently average volume that ranks him in the top 2% of all ETFs.

$ BITO and $ BTF both had their busiest days in about two weeks. $ BITO with a traded $ 400m, which is not just a ton, but = 25% turnover in a day – suggesting its use as a trading tool. pic.twitter.com/ukDGeSEa6F

– Eric Balchunas (@EricBalchunas) November 10, 2021

“BITO and BTF both had their biggest trading days in about two weeks. BITO traded for $ 400 million, or 25% of sales in one day, shows its use as a trading tool. “

BITO posted a cash inflow of approximately $ 112.79 million over the past nine days. While this is quite small compared to the first two days of listing, it has seen inflows of $ 567.16 million and $ 489.51 million, respectively. Balchunas notes that “this type of consistent flow period is rare” for a relaunched ETF.

BITO was listed on the New York Stock Exchange (NYSE) on October 19 and has since accumulated more than $ 1.4 billion in assets under management (AUM). Investor appetite for the fund remains high, even though the BITO price has not risen and is currently at $ 42.3, slightly below the original list price of around $ 43.2. Balchunas believes that option volume could be the driving factor for BITO at this stage.

It looks like there is little hope of an approved spot market bitcoin ETF in the short term, with balchunas shows that VanEcks Spot Bitcoin ETF will almost certainly be up to the 14th

“The SEC has 100 hours left before it has to make a decision whether to approve or reject the VanEck Spot Bitcoin ETF (I think they will reject it on Friday (November 14th)).”

On November 10th, ProShares investment strategist Leks Gerlak, speak that BITO will have no difficulty in reflecting the value of Bitcoin, as futures contracts play an important role in determining the value of its cash market:

“There is no single reference price for Bitcoin and the transaction price of Bitcoin varies between exchanges, usually from 1% to 2% and sometimes up to 4% to 5%. Expert research on this topic has shown that the Bitcoin futures market dominates the pricing process. “

“In the past few years, Bitcoin and Bitcoin futures have delivered very similar returns. Both correlation and beta are very close to Bitcoin. “

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