ProShares Bitcoin Strategy Fund Remains in Sync with Bitcoin’s Spot Price
ProShares asserts that its Bitcoin futures-based ETF, the ProShares Bitcoin Strategy Fund (BITO), has closely followed Bitcoin’s spot price and trading costs have not caused tracking errors. The BITO invests in regulated, cash-settled Bitcoin futures listed on the CME. Concerns about roll costs, associated with selling off expiring futures contracts and buying the next set, have been raised. However, Simeon Hyman, ProShares’ global investment strategist, states that the interest income from BITO’s cash holdings offsets roll costs. While there is anticipation for spot-based ETFs, Hyman believes the impact on existing futures-based ones remains speculative.
Key Points:
- ProShares Bitcoin Strategy Fund (BITO) has closely tracked Bitcoin’s spot price and trading costs have not caused tracking errors.
- BITO invests in regulated, cash-settled Bitcoin futures listed on the CME.
- Concerns about roll costs, associated with selling off expiring futures contracts and buying the next set, have been raised.
- Simeon Hyman, ProShares’ global investment strategist, states that the interest income from BITO’s cash holdings offsets roll costs.
- The impact of spot-based ETFs on existing futures-based ones remains speculative.
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Hot Take:
Despite concerns about roll costs, ProShares asserts that its Bitcoin futures-based ETF, the ProShares Bitcoin Strategy Fund, has closely aligned with Bitcoin’s spot price. While there is anticipation for spot-based ETFs, the impact on existing futures-based ones remains speculative.
