Bloomberg’s ETF expert Eric Balchunas said that the ProShares Bitcoin Futures ETF, also known as ‘BITO,’ has been doing really well lately.
ProShares Bitcoin Futures ETF has doubled in worth.
In a recent article on X, Balchunas talked about how much the BITO ETF has improved in the last month. During this time, the value of the ProShares Bitcoin Futures ETF almost doubled, mostly due to the market going up. He said that about $240 million of the total amount comes from new investments, making it the second-best month for the ETF.
It seems like a lot of people are buying and selling the ETF this week, with about $2 billion worth being traded. Balchunas said that a big part of the increase in value is because many people in the industry are expecting the United States SEC to approve a Bitcoin ETF. This has happened with other digital assets like Bitcoin before.
The financial expert said it’s ironic that if the Bitcoin spot ETF gets approved, it will likely replace the ProShares Bitcoin Futures ETF.
In simple words, a Bitcoin Futures ETF is a type of investment that lets people buy and sell shares based on the future price of Bitcoin. The CFTC oversees these kinds of investments. Bitcoin Futures ETFs try to copy the price of Bitcoin, but they are different. So, they won’t show the real performance of Bitcoin.
However, spot Bitcoin ETFs let investors trade the price of BTC without actually owning a wallet, Bitcoin address, or privacy keys. Simply put, investors can invest in the crypto market without taking on the risks that are usually associated with cryptocurrency.
Investors will likely switch to spot Bitcoin ETFs when they are available because they are less risky and speculative than Bitcoin Futures ETFs.
New Bitcoin investment opportunity coming soon.
At the same time, people are getting more and more excited about the possibility of a Bitcoin ETF being approved. Experts think it could happen soon. James Seyffart, a Bloomberg analyst for ETFs, thinks there is a 90% chance the approval will happen by January 10.
The types of applications from big companies like BlackRock and Fidelity Investments make people feel more hopeful about Bitcoin ETFs. The law now agrees with Grayscale’s win against the SEC, and accepts that a Bitcoin Futures ETF should be allowed without any excuse.
The SEC has been getting more involved lately, and people are hopeful about the current discussions with Grayscale.