HomeCrypto GamingProShares’ Bitcoin Strategy ETF BITO Underperforms BTC Price by 13.8% This Year:...

ProShares’ Bitcoin Strategy ETF BITO Underperforms BTC Price by 13.8% This Year: K33 Research

-

The underperformance stems from the prices related to the fund’s construction. BITO doesn’t buy tokens, as an alternative it holds BTC futures contracts on the Chicago Mercantile Trade (CME). The fund should roll over the contracts each month as they expire, making it weak to the value distinction between phrases. If subsequent month’s contract trades at a premium to the closest expiry – a phenomenon known as contango and typical throughout a bull market – over a sustainable interval, the fund will compound losses because of the “contango bleed.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Bitcoin Nears $100K, With Crypto Market Cap at Record $3.4T

Power in BTC is resulting in a rotation in different main tokens forward of the weekend, buoyed by renewed bullish hopes a few crypto-friendly...

NHN leveraging Ludo’s web3 and AI based retention and loyalty models

Persevering with to achieve floor by way of new partnerships, social questing platform Ludo has introduced it’s collaborating with South Korean sport developer NHN.  Behind...

Bitwise Joins Mounting Race for Solana ETF

Crypto-investments agency Bitwise took a giant soar Thursday towards providing a Solana alternate traded fund (ETF) in the US.

Limit Break enhances its NFT creator-first protocols

Having launched its ERC721C customary, recreation developer Limit Break has now made its Creator Token Commonplace 4.0 and Cost Processor 3.0 permissionless for deployment...

Most Popular

spot_img