The ProShares Bitcoin Strategy Fund, incepted in October 2021, established itself as the world’s largest crypto fund despite early speculation concerning the risks associated with derivatives trading. A venture of ProShares, this trailblazing ETF permits investors to gain bitcoin exposure without actual ownership of the cryptocurrency. Using regulated, cash-settled bitcoin futures listed on CME, many pundits projected inevitable underperformance due to costs linked with managing expiring futures contracts.
Contrary to initial fears, Simeon Hyman, ProShares’ global investment strategist, dispelled concerns stating that BITO, the ticker symbol for the ProShares Bitcoin Strategy ETF, has closely tracked bitcoin’s price since making its debut. This stability, observers believe, could potentially rewrite the narrative around the apparent risks associated with such ETFs.
Elsewhere in the crypto market, a decline was noted with bitcoin falling to near month lows of $29,593 amid US afternoon hours, while ether dipped below $1,900. Interestingly, LINK, the mainstay token of the Chainlink ecosystem, managed to buck the trend recording 15% gains following the release of an interoperability protocol that ensures communication between banks and blockchain networks.
Meanwhile, Ripple’s XRP experienced a slight drop of 6%, although the token’s price had nearly twice soared to 93 cents after a partial court victory against the U.S. Securities and Exchange Commission.
In related market news, Coinbase Borrow, a program enabling customers to avail dollar loans against their bitcoin holdings, announced an impending shutdown. The decision is part of a broader strategy to divert attention and resources to products of greater interest and use to its user base. Customers holding loans through the program are expected to settle any dues by November 20. The move precedes the exchange’s increased regulatory pressure, specifically from the SEC, triggering a re-examination and tightening of its domestic operations.
Therefore, this fluid market landscape ensures active participation by injecting an element of suspense and unpredictability. With centralized exchanges witnessing high inflows, marked by ether’s single-day peak since May 1, the stage is set for inevitable price volatility. While skepticism remains, crypto enthusiasts and stakeholders have their eyes trained on these dynamic developments, hoping to leverage them to their advantage.
Source: Coindesk
