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ProShares Remains Resilient Amid Surge in Spot Bitcoin ETFs

ProShares, a prominent issuer of futures-based Bitcoin exchange-traded funds (ETFs), remains unfazed by potential threats associated with the introduction of spot Bitcoin ETFs in the United States, according to a senior executive.

Simeon Hyman, ProShares’ global investment strategist, expressed that the company perceives advantages in the launch of spot Bitcoin ETFs for its futures products, both from operational and commercial perspectives.

In an interview with Cointelegraph on February 2, Hyman noted that their flagship Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), has experienced “very efficient” trading volumes since the arrival of spot Bitcoin ETFs.

Hyman conveyed the company’s satisfaction with BITO’s commercial impact, revealing that it currently trades with a mere two basis points deviation (2/100th of a percent) from its underlying value.

In contrast, spot ETFs have displayed an average premium or discount of 36 basis points.

Beyond the commercial realm, ProShares anticipates operational benefits stemming from the increased adoption driven by spot Bitcoin ETFs.

Hyman explained that the presence of spot ETFs is enhancing the futures market, which was already well-functioning and regulated.

The increased activity around Bitcoin is seen as a positive development.

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These statements align with BITO’s recent trading dynamics, except for an abnormal spike in trading volume on January 11, coinciding with the launch of spot Bitcoin ETFs.

On that day, BITO’s trading volumes soared to nearly $2 billion, while its typical volumes ranged between $300 million and $600 million.

However, since the introduction of spot BTC ETFs, BITO has returned to its usual trading figures, reaching as low as $180 million on February 2. Prior to the spot ETFs’ launch, it traded within a similar range, as indicated by Yahoo Finance data.

It is worth noting that the news arrived as major spot Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC) temporarily surpassed BITO in trading volumes, marking a significant shift.

BITO had previously held the title of the world’s largest Bitcoin ETF in terms of trading volumes.

Launched in October 2021, BITO stands as the United States’ first substantial futures Bitcoin ETF.

In contrast to spot Bitcoin ETFs, which track actual Bitcoin holdings, ProShares’ BITO uses futures contracts as its underlying asset.

Despite the changing landscape, ProShares remains optimistic about the future of its futures-based Bitcoin ETF amid the growing interest in the cryptocurrency market.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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