ProShares Bitcoin ETF Reaches Same Net Asset Value As Canadian ETFs In Two Days



Arman Shirinyan

While having underlying issues, ProShares Bitcoin ETF is already showing significant results


  • Two-day-old ProShares ETF’s assets under management reach Canadian funds
  • Problems with Bitcoin Futures ETFs

ProShares Bitcoin Futures-Based Exchange Traded Fund Breaks $ 1 Billion in Assets Under Management and Becomes Fastest ETF to Do so in Investment Product History , according to Kaiko.

Two-day-old ProShares ETF’s assets under management reach Canadian funds

While ProShares products are the first Bitcoin ETF in the United States, Canada already had several Bitcoin ETFs traded on the Toronto Stock Exchange. On a chart provided by Kaiko, we can see that the US-based ETF’s NAV has hit the billion dollar mark and is approaching the Canada-based investment products that have been trading since February and April of this year. .

The main difference between the two funds is that Canadian ETFs actually hold Bitcoin instead of creating synthetic cryptocurrency exposure by holding short-term Bitcoin futures contracts. Currently, only two funds have a higher net asset value than ProShares: 3iQ ETFs and Purpose Bitcoin.

Since the ProShares product is one of the first offerings in the US market, we will likely see more diversity in investor choices once new Bitcoin related products become available in the US market.

Problems with Bitcoin Futures ETFs

While investors have expressed strong interest in recently discontinued investment products, some analysts remain skeptical of the futures ETF. The main problem with funds that grant exposure to the market through futures contracts is the high cost of holding such a product due to a “contango bleed.”

With futures contracts traded at a premium to cash assets, some investors may experience losses that they cannot avoid when trading ETFs based on futures contracts. On the contrary, physically backed ETFs do not have such a problem since market exposure is obtained by holding a real asset.



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