ProShares Embraces Bitcoin ETF Impact on BITO Futures

ProShares, a leading provider of Bitcoin exchange-traded funds (ETFs), is not concerned about the launch of spot Bitcoin ETFs in the United States, according to a senior executive. In fact, ProShares believes that the introduction of spot Bitcoin ETFs will have both operational and commercial benefits for its futures products. Simeon Hyman, ProShares’ global investment strategist, stated in an interview with that the company’s flagship Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), has experienced efficient trading volumes since the launch of spot Bitcoin ETFs. Hyman stated that BITO is trading very closely to its underlying value, with only a slight variance of two basis points.

Besides the commercial advantages, ProShares also sees operational benefits from the adoption of spot Bitcoin ETFs, as it is expected to attract more participants to the Bitcoin market. Hyman believes that the entrance of spot ETFs has improved the futures market by bringing more people into the Bitcoin space. These sentiments align with BITO’s recent trading patterns, where it saw a significant increase in trading volume on January 11 due to the excitement surrounding the launch of spot Bitcoin ETFs. Since then, BITO’s trading volumes have returned to normal levels, reaching as low as $180 million on February 2.

This news comes as major spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust ETF, surpassed BITO in terms of trading volumes for the first time. Prior to this, BITO held the title of the largest Bitcoin ETF in the world. Launched in October 2021, BITO is the first significant futures-based Bitcoin ETF in the United States. Unlike spot Bitcoin ETFs that track actual Bitcoin holdings, BITO tracks futures contracts as its underlying asset.

ProShares remains optimistic about the future of its Bitcoin futures ETF despite the entry of spot Bitcoin ETFs into the market. The company believes that the coexistence of both types of ETFs will bring more liquidity and activity to the Bitcoin market, benefiting all participants. ProShares’ stance is supported by the trading data of BITO, which has continued to attract significant trading volumes even after the launch of spot Bitcoin ETFs. ProShares sees the emergence of spot Bitcoin ETFs as a positive development for the industry and expects it to contribute to the growth and maturation of the Bitcoin market.