The ProShares Bitcoin Strategy ETF is on track to reach a limit on the number of futures contracts it’s allowed after quickly becoming a little too popular. After just a couple of days of trading, the ProShares ETF has reached 1,900 contracts sold for October and there is 2,000 front-month limit imposed by the Chicago Mercantile Exchange. There are already 1,400 contracts for November and there is an overall maximum limit of 5,000 open contracts according to Bloomberg . One solution could be to offer longer contracts, but that would carry the danger of too much distancing from BTC prices. President of the advisory firm the ETF Store, Nate Geraci, commented that the fund could start to diverge from market prices, adding:The launch of competing products such as the Valkyrie Bitcoin Strategy ETF which will commence trading today, and the VanEck ETF which is expected to trade on Monday, Oct. 25, may dilute the demand for the ProShares fund. As reported by Cointelegraph, the ProShares ETF became the first-ever fund to hit $1 billion in assets under management in just two days . It beat an 18-year-old record previously held by a gold-based fund that did it in three. Bloomberg senior ETF analyst, Eric Balchunas, said that the momentum will still be hard to stop at this point. Related: VanEck Bitcoin Strategy ETF will likely launch next week as crypto prices reach ATHsBalchunas also thinks that the success of Bitcoin futures products may speed up the approval of a spot-based Bitcoin ETF. As reported by Cointelegraph on Oct. 18, Grayscale has already anticipated this and is preparing to convert its popular Bitcoin Trust into a physically-backed product based on spot markets.
All data is taken from the source: https://cointelegraph.com/
Article Link: https://cointelegraph.com/news/too-popular-bitcoin-futures-etf-in-danger-of-hitting-upper-limit-for-contracts
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