Bitcoin ETF Launch Hype Fades as Funds Slip in Value, BTC Futures Open Interest Down 38% in 2 Months – Finance Bitcoin News

After the shipped debut of the Proshares bitcoin exchange-traded fund (ETF), Valkyrie bitcoin futures ETF and the Vaneck bitcoin ETF strategy, it appears that interest in these types of funds has faded a lot. After the Proshares bitcoin ETF BITO reached an all-time high on November 10, the ETF is down 39% over the last 64 days. The value of Valkyrie’s Bitcoin ETF has also fallen by 37% over the past two months.

Bitcoin futures ETF quiet continues

A large part of the crypto community has been so excited for years about the launch of the first Bitcoin Trading Fund (ETF), that a number of Bitcoin ETF applications were rejected before 2021.

Finally, when the first Bitcoin futures ETF was approved in the US, the debut of Proshare futures ETF broke ETF records, capturing nearly $1 billion in total volume in the first 24 hours. Months later, the Proshares Bitcoin Strategy ETF (BITO) trades hands for $26.96 on January 13, 2022, but that price is 39.12% lower than the high of 44.29 on November 10, 2021.

Bitcoin ETF Launch Hype Fades As Funds Fall In Value, BTC Futures Interest Drops 38% In 2 Months

“The ETF craze for bitcoin futures is fading,” Bloomberg author Catherine Greifeld explained in mid-November. “While Proshares absorbed $1.1 billion in just two days — the fastest an ETF has ever done — the pace of growth has slowed considerably,” Greifield said at the time.

The financial author further discusses the Vaneck ETF, where she notes that low management fees can set the fund apart from the rest. At the time, Greifield quoted Eric Balchonas, chief analyst at Bloomberg Intelligence, who said:

There’s definitely a lull going on now regarding launch mania, and so Vanek has their work cut out for them trying to get people excited again.

Valkyrie’s BTF down 37%, Vaneck’s XBTF down 27%, and open interest on bitcoin futures aggregated across cryptocurrency exchanges is down over 38%

The same can be said for the Valkyrie Bitcoin Strategy ETF (BTF) when it reached its all-time high (ATH) at $26.67 per share on November 9, 2021, and today it is changing for $16.70 per unit or 37.38% down from ATH.

Bitcoin ETF Launch Hype Fades As Funds Fall In Value, BTC Futures Interest Drops 38% In 2 Months

The Vaneck Bitcoin Strategy ETF (XBTF) is down only 27.70% as the ETF exchanged hands at $58.08 per unit on November 19, 2021, and today it is trading at 41.99 per unit. While Proshares and Valkyrie ETFs appeared long before Vaneck was introduced, all funds have a strong correlation to the bitcoin spot and crypto-asset futures markets.

Bitcoin ETF Launch Hype Fades As Funds Fall In Value, BTC Futures Interest Drops 38% In 2 Months

The futures markets have seen a drop in open interest, as overall interest in bitcoin futures across cryptocurrency exchanges has declined since mid-November as well. The largest number of open interest on Bitcoin futures was on November 11, 2021, at more than $28 billion.

Today, the total open interest across the most popular derivative exchanges is $17.22 billion. This equates to a 38.50% loss over the past two months, and the pattern is quite similar to the movement of the Bitcoin (BTC) spot market price.

Tags in this story

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What do you think of the three bitcoin futures ETFs and their overall performance over the past few months? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at Bitcoin.com News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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