ProShares, a leading issuer of Bitcoin futures-based exchange-traded funds (ETFs), has expressed confidence in the benefits stemming from the launch of spot Bitcoin ETFs in the United States.
According to the company’s global investment strategist, Simeon Hyman, the introduction of spot Bitcoin ETFs has had a positive impact on ProShares’ Bitcoin futures products.
ProShares’ flagship Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), has witnessed “very efficient” trading volumes since the introduction of spot Bitcoin ETFs. Hyman noted that BITO is currently trading with a minimal two-basis-point (2/100th of a percent) deviation from its underlying value. In contrast, spot Bitcoin ETFs have experienced an average premium or discount of 36 basis points.
Beyond the commercial aspect, ProShares also recognizes operational benefits resulting from the increased adoption of spot Bitcoin ETFs. Hyman emphasized that the presence of spot ETFs is contributing to the growth of the Bitcoin market, making the futures market even more robust and regulated.
He commented, “With the entrance of spot ETFs, the futures market is getting better — even better. It was already a well-functioning and regulated place, but it’s gotten a little better with the spot guys because there’s just more people around Bitcoin again.”
Trading dynamics of BITO
BITO’s trading dynamics in recent weeks reflect the evolving landscape of the Bitcoin ETF market. Excluding the extraordinary trading volumes on January 11th, which coincided with the launch of spot Bitcoin ETFs, BITO has continued to trade within its usual range.
On January 11th, BITO’s trading volumes surged to nearly $2 billion, significantly higher than its typical trading volumes, which ranged from $300 million to $600 million. However, since then, trading volumes returned to a more regular pattern, reaching as low as $180 million on February 2nd.
This development is significant as major spot Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC) briefly surpassed BITO’s trading volumes last week. Before this, BITO had held the title of the largest Bitcoin ETF in the world in terms of trading volumes.
BITO distinguished itself as the first significant Bitcoin futures ETF in the United States. Unlike spot Bitcoin ETFs, which are designed to track actual Bitcoin holdings, ProShares’ BITO tracks futures contracts as its underlying
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