After the debuts of the Proshares Bitcoin exchange-traded fund (ETF), Valkyrie’s Bitcoin Futures ETF, and the Vaneck Bitcoin Strategy ETF, interest in these types of funds appears to have faded a lot. After the Proshares Bitcoin ETF BITO hit a record high on Nov. 10, the ETF is down 39% over the past 64 days. Valkyrie’s Bitcoin ETF is also down 37% over the past two months.
Bitcoin futures ETF calm continues
The launch of the first Bitcoin exchange-traded fund (ETF) has been hyped by a large segment of the cryptocurrency community for years, as many Bitcoin ETF applications have been rejected ahead of 2021.
Finally, Proshare’s Bitcoin Futures ETF Is Here When the First Bitcoin Futures ETF in the U.S. Is Approved New record, captured nearly $1 billion in total transaction volume in the first 24 hours. A few months later, the Proshares Bitcoin Strategy ETF (Billiton) changed hands at $26.96 on Jan 13, 2022, but that price was 39.12% below its Nov 10, 2021 high of 44.29.
Bloomberg writer Kathryn Grayfield explain In mid-November, “the Bitcoin futures ETF mania is fading.” “While the Proshares fund absorbed $1.1 billion in just two days — the fastest ever for an ETF — growth has slowed considerably,” Grayfield said at the time.
The financial author discusses the Vaneck ETF further, as she points out that the lower management fee sets the fund apart from the rest. At the time, Greifeld quoted Bloomberg Intelligence senior ETF analyst Eric Balchunas as saying:
There’s definitely been a lull now relative to the release frenzy, so Vaneck has done their job for them, trying to get people excited again.
Valkyrie’s BTF is down 37%, Vaneck’s XBTF is down 27%, and total Bitcoin futures open interest on cryptocurrency exchanges is down more than 38%
The same is true for the Valkyrie Bitcoin Strategy ETF (BTF) when it reached an all-time high (ATH) of $26.67 per unit on November 9, 2021, it changed hands today at $16.70 per unit or a 37.38% decline from ATH.
Vaneck Bitcoin Strategy ETF (XBTF) is only down 27.70% as the ETF changed hands at $58.08 per unit on November 19, 2021, and today it is trading at 41.99 per unit.While the Proshares and Valkyrie ETFs were listed long before the Vaneck launch, all of these funds are Bitcoin spot price and crypto assets futures market.
Open interest in the futures market fell as Total Bitcoin Futures Open Interest Trading volumes on cryptocurrency exchanges have also declined since mid-November. The highest number of Bitcoin futures open interest was on November 11, 2021, at over $28 billion.
Today, the total open interest on the most popular derivatives exchange stands at $17.22 billion.This equates to a 38.50% loss over the past two months, and the pattern is similar to Bitcoin (BTC) Spot market price trends.
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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