Bitcoin

David

Spot

You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/proshares-bitcoin-strategy-etf-faces-sharp-decline-in-trading-volume" rel="noopener noreferrer nofollow">ProShares Bitcoin Strategy ETF Faces Sharp Decline in Trading Volume</a> 
Since the launch of 11 spot ETFs on January 11th in the U.S., the ProShares <a href="https://en.bitcoinhaber.net/bitcoin-price-surge-gains-attention-key-levels-and-expert-analysis" rel="noopener noreferrer nofollow">Bitcoin</a> Strategy ETF (BITO) has experienced a significant decline in daily trading volume. On January 18th, BITO’s trading volume was over $500 million, a 75% drop from its January 11th peak of $2 billion.
During the same period, BITO saw more than $270 million in net outflows, according to ETF.com. In contrast, spot ETFs have recorded over $14 billion in cumulative trading volume since their inception, with inflows exceeding $1.2 billion in a single week.
Spot ETFs offer direct investment in cryptocurrency and ease the burden of storage issues, making them a preferred alternative to futures-based ETFs. BITO, which invests in CME BTC futures, faces “roll costs” due to the need to renew expiring contracts, negatively impacting the fund’s performance.
Despite this, the cash creation structure of spot ETFs could still allow futures-based ETFs like BITO to maintain a presence. The creation methods, in-kind and cash creation, are more commonly utilized in spot ETFs. This process remains the same except for authorized participants (APs) providing cash and the issuer purchasing the actual assets.
According to Coinbase’s head of institutional research, David Duong, BITO will continue to be “an integral part of the Bitcoin ETF space” despite the drop in volume. APs may continue to hedge their positions by purchasing BTC before the launch of spot ETFs and using BITO to “hedge potential client buys and sells throughout the day.”
<h5>The post first appeared on BH NEWS: <a href="https://en.bitcoinhaber.net/proshares-bitcoin-strategy-etf-faces-sharp-decline-in-trading-volume" rel="noopener noreferrer nofollow">ProShares Bitcoin Strategy ETF Faces Sharp Decline in Trading Volume</a></h5>

ProShares Bitcoin Strategy ETF Faces Sharp Decline in Trading Volume

BH NEWS

Other articles published on Jan 22, 2024

Evernode, Built On XRP Ledger, Encounters Node Glitch Shortly After Launch

Solana Consolidates After Rally, Analyst Asks To Watch This Support As SOL Drops Below $90

Major $1.62 Million DYDX Token Unlock Event on the Horizon

How to Buy Origin Protocol Coin?

Coinbase Fights Back: CLO Challenges US GAO’s Stance On Crypto Sanctions

HT surges by almost 8% amid Huobi Token conversion start

Join our free newsletter for daily crypto updates!