Blog

The ProShares Bitcoin Strategy (BITO) ETF made historical past when it was accepted. Launched precisely one yr in the past as we speak, it was the primary futures-based BTC ETF within the United States and garnered large consideration from the broader monetary market. As BITO celebrates its one-year birthday as we speak, we check out how the ETF has carried out over time and its present efficiency in comparison with when it first launched.

The Year In Review

The ProShares Bitcoin Strategy (BITO) ETF had been extremely anticipated, which had been obvious within the buying and selling quantity recorded simply after launch. In the primary two days, the BITO noticed greater than $1 billion in buying and selling quantity, making it the quickest ETF to ever hit that determine.

BITO noticed greater than 20,000 BTC in publicity simply days after the launch and pleasure continued to develop as talks of Spot Bitcoin ETFs made the rounds. Its efficiency throughout this time had grown to a few optimistic 0.3% versus the BTCUSD. However, this could solely final for a short while. 

Shortly after the BITO launch, the crypto market had seen a large crash that precipitated the worth of the digital property available in the market to say no considerably. BITO would start buying and selling beneath BTCUSD shortly after, and despite the fact that there was some restoration since then, to continues to underperform Bitcoin.

BITO underperforms BTCUSD | Source: Arcane Research

Presently, BITO is underperforming the BTCUSD spot pair by a detrimental 1.79%. It is an effective restoration from the detrimental 2.8% figures from December 2021, and buyers are making good time in 2022. BITO’s publicity as of this week sits at 32,520 BTC. This is simply barely beneath its all-time excessive of 34,520 BTC again on August third. This exhibits that buyers are nonetheless optimistic about the way forward for the fund.

Bitcoin Spot ETFs Meet Resistance

Even although the Securities and Exchanges Commission (SEC) has given the inexperienced mild to a number of bitcoin ETFs previously yr, it’s nonetheless adamant about not approving any Spot Bitcoin ETFs. The regulator has identified that considerations concerning the dangers of investing in a Spot BTC ETF have been behind this, however firms haven’t been receptive to this.

BTC worth at $19,165 | Source: BTCUSD on TradingView.com

The most distinguished of the businesses which have pushed again in opposition to the SEC’s stance on that is Grayscale. The agency which manages numerous crypto funds had utilized to show its notorious Grayscale Bitcoin Trust (GBTC) right into a Spot ETF however had been rejected. Grayscale didn’t take this rejection flippantly although because it sued the regulatory physique, citing that its argument for not approving a BTC Spot ETF was “flawed” and “inconsistently applied”. 

The SEC has to date rejected greater than a dozen BTC Spot ETF purposes together with these from WisdomTree and Ark21Shares. Presently, Grayscale’s case in opposition to the SEC remains to be ongoing, however there isn’t any timeline on when the regulatory physique would approve a Spot ETF.

Featured picture from Techstory, charts from Arcane Research and TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional humorous tweet…