The primary reason for the lessened interest in Bitcoin futures ETFs is the falling price of Bitcoin since it reached its all-time high in November 2021.
Following a strong start, interest in the ProShares Bitcoin Strategy Exchange Traded Fund (BITO) has faded, with the lowest number of CME contracts since November 2021.
According to the fund’s most recent statement from January 11, the Bitcoin futures ETFs consist of 4,904 Chicago Mercantile Exchange (CME) futures contracts. With the help of a Bitcoin Futures ETF, the investors can trade on the price of Bitcoin (BTC) in the future without needing to own the commodity.
The value of BITO’s assets under management (AUM) has fallen to $1.16 billion from a high of $1.4 billion in November. This is almost the same amount it had two days after its October 18 inception, when it became the fastest fund in history to exceed $1 billion in assets under management.
A spot-based BTC ETF, according to Arcane, would not be subject to the same hefty fees that develop over time. The SEC did not approve any ETFs, but a decision on Fidelity Investments’ filing is expected by January 20.
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