After the busy 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 seems to have waned a lot. After bitcoin ETF Proshares BITO hit an all-time high on Nov. 10, the ETF is down 39% in the past 64 days. Valkyrie’s bitcoin ETF has also lost 37% of its value in the past two months.
Bitcoin Futures ETF The 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 were turned down before 2021.
Finally, when the first US bitcoin futures ETF was approved, Proshare’s bitcoin futures ETF launch broke records, capturing nearly $1 billion in total volume in the first 24 hours. Months later, the Proshares Bitcoin Strategy ETF (BITO) trades hands for $26.96 on January 13, 2022, but that price is 39.12% lower than the November 10, 2021 high of 44.29.
Bloomberg author Katherine Greifeld explained in mid-November that “the bitcoin futures ETF frenzy is waning.” “While the Proshares fund absorbed $1.1 billion in just two days — the fastest an ETF has ever done — that pace of growth has slowed significantly,” Greifeld said at the time.
The financial author discussed ETF Vaneck in more detail, as she noted that lower management fees could set the fund apart from the rest. At the time, Greifeld quoted Eric Balchunas, principal ETF analyst at Bloomberg Intelligence, who said:
There’s definitely a lull at the moment from the launch mania and so Vaneck has his work cut out to try to revive people.
Valkyrie’s BTF is down 37%, Vaneck’s XBTF is down 27%, total open interest on Bitcoin futures on cryptocurrency exchanges is down over 38%
The same can be said for the Valkyrie Bitcoin Strategy ETF (BTF) when it hit an all-time high (ATH) of $26.67 per share on November 9, 2021, and today it is changing hands for 16, $70 per unit or 37.38% less than ATH.
The Vaneck Bitcoin Strategy ETF (XBTF) is only down 27.70% as the ETF traded hands for $58.08 per unit on November 19, 2021, and today it is trading for 41 .99 per unit. While Proshares and Valkyrie ETFs debuted long before Vaneck’s offering, all funds have a close relationship to the bitcoin spot price and crypto asset futures markets.
Futures markets have seen a decline in open interest as total bitcoin futures interest on cryptocurrency exchanges has also declined since mid-November. The highest number of bitcoin futures open interest was on November 11, 2021, at over $28 billion.
Today, the aggregate open interest on the most popular derivatives exchanges is $17.22 billion. This equates to a loss of 38.50% over the past two months and the pattern is quite similar to the price action of Bitcoin (BTC) spot market.
What do you think of the three bitcoin futures ETFs and their overall performance over the past few months? Let us know what you think about this topic in the comments section below.
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