ProShares’ Future Bitcoin ETF, or “BITO,” has reached a new All-Time High (ATH) amid increasing interest and excitement over spot Bitcoin ETFs.
As to the X article by James Seyffart, the Bloomberg ETF analyst, ProShares’ BITO is getting near $1.5 billion in Total Value Locked (TVL). This is just two weeks after Eric Balchunas declared that the product has exceptional performance. Balchunas emphasized that in just 30 days, the value of the ProShares Bitcoin Futures ETF had doubled.
At the time, the well-known analyst blamed the market-wide increase in value on the expectation that the US SEC would approve a Bitcoin ETF on the spot.
The irony between the ProShares Bitcoin Futures ETF and the possible spot one X user brought up BTC ETFs. The SEC-approved spot Bitcoin ETF will undoubtedly replace products like ProShares BTC Futures ETF.
Investors can lawfully trade the price of Bitcoin using spot ETFs even if they do not possess private keys or a Bitcoin address. In contrast, futures simply provide exposure to the fluctuations in the price of Bitcoin futures contracts and only replicate the current price of the cryptocurrency.
Hopes for the agency’s favorable ruling have grown stronger in the last few days. Experts remain optimistic about the possibility of a spot Bitcoin ETF approval. Balchunas had restated his earlier forecast that the SEC approval would come eventually.
He boldly declared that, as previously conjectured, the chances of getting approved are still 90%. Franklin Templeton and Hashdex just had their spot Bitcoin ETF applications delayed by the SEC on the premise that “the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.'”
In light of the postponement, the SEC seeks public input on whether Templeton’s application should be accepted or rejected. The fact that the SEC updated Franklin Templeton’s application before the January 1, 2024 deadline raises the possibility that the agency will be expediting the review of all spot BTC ETF applications to approve them all at once in January.
