ProShares’ Bitcoin Futures ETF Progressing Toward a New Record!

• According to Bloomberg ETF analyst Eric Balchunas, the ProShares Bitcoin Futures ETF with the ticker code ‘BITO’ has shown exceptional performance in the last few days.
• Balchunas attributes a significant percentage of this increase in value to the industry’s expectation of SEC approval for a spot Bitcoin ETF, a sentiment applicable to other digital assets like Bitcoin.
• Another Bloomberg ETF analyst, James Seyffart, recently predicted a 90% probability of approval by January 10.

To ETF analyst Eric Balchunas, the volume increase in the Bitcoin ETF codenamed BITO attracts attention: Is ProShares’ ETF aiming for a new record?

Increasing Volume in BITO Bitcoin ETF Draws Attention

Eric Balchunas, a Bloomberg ETF analyst, highlights the increase in volume in the Bitcoin ETF with the code BITO to Eric Balchunas. In his recent post on X, Balchunas emphasized the progress level that the BITO ETF has seen in the last 30 days.

During this period, ProShares Bitcoin Futures ETF assets nearly doubled in value, with Balchunas noting that most of this trend is attributed to market valuation. However, he pointed out that approximately $240 million of the volume came from flows, making it the second-best month for the ETF.

It appears that the ETF is heading towards trading assets over $2 billion this week, and Balchunas ties a significant portion of this value increase to the industry’s overall expectation of SEC approval for a spot Bitcoin ETF, a scenario valid for other digital assets like Bitcoin. The financial expert labeled this situation as a contradiction and mentioned that in the case of the potential approval of a Bitcoin spot ETF, offerings like ProShares Bitcoin Futures ETF would be replaced.

For reference, Bitcoin Futures ETFs issue publicly traded securities that expose investors to the price movements of Bitcoin futures contracts, according to the CFTC. They typically mimic the spot price of Bitcoin and, since it does not match the spot price, the performance of Bitcoin Futures ETFs will never truly reflect the performance of Bitcoin.

On the other hand, spot Bitcoin ETFs allow investors to legally trade the price of BTC without the obligation to hold a wallet, Bitcoin address, or privacy key. Particularly, investors can avoid perceived risks associated with cryptocurrencies while being exposed to the crypto market.

Considering the high volatility and speculation-based nature of Bitcoin Futures ETFs, investors may turn to spot Bitcoin ETFs once they are finally launched.

Spot Bitcoin ETF Coming Soon!

Meanwhile, expectations for the approval of a spot Bitcoin ETF are increasing, and experts are quite optimistic about the potential timeline. Another Bloomberg ETF analyst, James Seyffart, recently predicted a 90% probability of approval by January 10.

The quality of applications from firms like BlackRock, Fidelity Investments, and VanEck adds further optimism to the potential of Bitcoin spot ETFs. Already, with Grayscale’s success in front of the SEC, there is an assumption that there is no excuse for the rejection of a proper ETF product with Bitcoin Futures ETF. Especially with the SEC engaging more recently and ongoing negotiations with Grayscale, hopes are further on the rise.