Bitcoin’s Surge Shakes Up ETF World: Who’s Soaring And Who’s Crashing?
25 October 2023 - 4:00PM
NEWSBTC
A ripple of excitement has recently coursed through the crypto
market, particularly on Bitcoin. Bolstered by speculation regarding
the impending approval of a spot Bitcoin exchange-traded fund (ETF)
—a sentiment propelled by BlackRock’s iShares ETF’s appearance on
the DTCC website—Bitcoin recorded an 18-month high trading above
$35,000. This upward movement came on the heels of a notable 10%
surge on Monday. ProShares Short Bitcoin Strategy ETF: A Declining
Tale? Contrary to the general jubilance, not all BTC-related
financial instruments are shared in the celebration. The ProShares
Short BTC Strategy ETF, designed for traders banking on a decline
in Bitcoin futures, grappled with a record low. Related Reading:
Bitcoin Mania: EY Insider Reveals Demand From Wall Street Titans,
$40,000 Soon? Just over a year ago, this fund basked in the glory
of a peak value of $45.61; a zenith reached as crypto assets took a
downturn in the aftermath of FTX’s collapse. However, this year,
the ProShares Short Bitcoin Strategy ETF has faced challenges, its
value diminishing by 59.3% to stand at $16.68, a historic nadir, at
the time of writing. This dip didn’t deter investors. Despite the
drop, the ProShares Short BTC ETF, boasting net assets of $62.98
million, is poised for its second consecutive month of inflows,
according to data from Lipper. Lucas Kiely, the Chief Investment
Officer at digital wealth platform Yield App, offered a perspective
on this trend. He posited that the market might be “buying the
rumor and selling the fact.” Kiely further elaborated that the BTC
short ETF provides investors a unique opportunity to speculate on a
potential BTC sell-off. The Chief Investment Officer noted: A lot
of people think this rally is a short squeeze – we have no real
news coming out and a lot of anticipation around the SEC’s approval
or disapproval of these spot ETFs and people are getting ahead of
themselves. Ultimately, the market is again buying the rumor and
selling the fact and the BTC short ETF is the only way for
investors to express the view BTC is going to sell off.
Furthermore, Kiely suggested another motive behind investors’
moves. With the surge in BTC’s value, some might be seeking to
“lock in” their profits and, hence, are turning to the ETF as a
hedge against potential future downturns. Other BTC-Related ETFs
Enjoy The Rise Conversely, some BTC-associated ETFs rode the wave
of optimism. The ProShares Bitcoin Strategy ETF, mirroring BTC
futures alongside the Valkyrie Bitcoin Miners ETF, registered gains
of 7.68% and 6.54%, respectively, over the past day. Leading
the pack among recently introduced funds that track Ethereum (ETH
)futures was the Valkyrie Bitcoin and Ether Strategy ETF, with a
commendable 7.64% uptick over the same period. Related Reading: All
Clear For $40,000? Bitcoin Shows Little On-Chain Resistance Ahead
Furthermore, BTC has retraced from its recent traded high of
$35,000 and currently trades at $33,746, at the time of writing,
still up 9.2% in the last 24 hours. Featured image from Unsplash,
Chart from TradingView
Ripple (COIN:XRPUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ripple (COIN:XRPUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024