After the supercharged debut of Proshares' Bitcoin exchange-traded fund (ETF), Valkyrie's Bitcoin futures ETF and Vaneck's Bitcoin strategy ETF, interest in these types of funds appears to have waned significantly. After hitting an all-time high on November 10, the Proshares Bitcoin ETF BITO has fallen 39% over the past 64 days. Valkyrie's Bitcoin ETF has also lost 37% in value over the past two months. Bitcoin Futures ETF Lull Continues Much of the cryptocurrency community has been very excited for years about the launch of the first Bitcoin exchange-traded fund (ETF), as a number of Bitcoin ETF applications pre-2021...
After the supercharged debut of Proshares' Bitcoin exchange-traded fund (ETF), Valkyrie's Bitcoin futures ETF and Vaneck's Bitcoin strategy ETF, interest in these types of funds appears to have waned significantly. After hitting an all-time high on November 10, the Proshares Bitcoin ETF BITO has fallen 39% over the past 64 days. Valkyrie's Bitcoin ETF has also lost 37% in value over the past two months.
For years, much of the cryptocurrency community has been very excited about the launch of the first Bitcoin exchange-traded fund (ETF), as a number of Bitcoin ETF applications were rejected before 2021.
Finally, when the first US Bitcoin futures ETF was approved, the debut of Proshares Bitcoin futures ETF shattered records, bringing in total volume of nearly $1 billion in the first 24 hours. Months later, the Proshares Bitcoin Strategy ETF ( BITO ) is exchanging hands for $26.96 on January 13, 2022, but this price is 39.12% below the high of 44.29 on November 10, 2021.
Bloomberg writer Katherine Greifeld explained In mid-November, that the “Bitcoin futures ETF craze is easing.” “While the Proshares fund absorbed $1.1 billion in just two days — the fastest any ETF has ever done — that pace of growth has cooled significantly,” Greifeld said at the time.
The financial writer further elaborated on the Vaneck ETF, noting that lower management fees could set the fund apart from the rest. At the time, Greifeld quoted Bloomberg Intelligence senior ETF analyst Eric Balchunas as saying:
There's definitely a lull in terms of launch mania at the moment, and so Vaneck is struggling to get people excited again.
The same applies to the Valkyrie Bitcoin Strategy ETF ( BTF ) when it reached an all-time high (ATH) of $26.67 per share on November 9, 2021, and today it is changing hands at $16.70 per unit, or 37.38% below the ATH.
The Vaneck Bitcoin Strategy ETF ( XBTF ) is down just 27.70% as the ETF traded at $58.08 per share on November 19, 2021 and is trading at $41.99 per share today. While Proshares and the Valkyrie ETFs debuted long before Vaneck's offering, all funds have a strong relationship with Spot price of Bitcoin and that of the crypto asset Futures markets.
Futures markets have seen a decline in open interest Total open interest in Bitcoin futures Cryptocurrency exchanges have also declined since mid-November. The highest number of open Bitcoin futures was on November 11, 2021 with over $28 billion.
Today, total open interest on the most popular derivatives exchanges is $17.22 billion. This represents a loss of 38.50% over the last two months and the pattern is quite similar Bitcoins (BTC) Price action on the spot market.
What do you think about the three Bitcoin futures ETFs and their overall performance over the past few months? Let us know your thoughts on this topic in the comments section below.
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