Concerns about the roll costs are misguided; ProShares has closely tracked Bitcoin’s price since inception, said Simeon Hyman, global investment strategist at ProShares. ProShares, the issuer of the first U.S. Bitcoin futures-linked exchange-traded fund (ETF), has dispelled concerns that costs associated with trading of the derivatives would lead to tracking errors.
The ProShares Bitcoin Strategy Fund began trading on the New York Stock Exchange in October 2021, allowing investors to gain exposure to Bitcoin (BTC) without having to actually own the cryptocurrency. The ETF, the world’s largest crypto fund, invests in regulated and cash-settled Bitcoin futures listed on the Chicago Mercantile Exchange (CME).
Cryptocurrencies slid Thursday with Bitcoin (BTC) dipping to as low as $29,593 during U.S. afternoon hours, near its lowest point in a month. Ether (ETH) buckled below $1,900 to change hands 1% lower than 24 hours before. LINK, the native token of the Chainlink ecosystem, defied the slump and was the only crypto asset with sizable gains among the 40 largest tokens by market capitalization. The token surged 15% through the day, rising above $8 for the first time in nearly three months after Chainlink released this week an interoperability protocol that facilitates communication between blockchains and banks, tested by interbank communication system SWIFT. Ripple’s XRP pared some of its impressive gains from previous days, dropping some 6% in 24 hours. The token’s price almost doubled to 93 cents a week ago, following a partial court victory against the U.S. Securities and Exchange Commission (SEC).
Coinbase Borrow, a program that allowed customers to receive regular currency loans of up to $1 million against their Bitcoin (BTC) holdings, is shutting down. The company will instead focus its resources on products that customers care about most, a spokesperson told journalists. Customers who hold loans through the program have until Nov. 20 to pay back any outstanding loan balances.
ProShares has dispelled concerns that costs associated with trading of Bitcoin futures-linked exchange-traded funds (ETFs) would lead to tracking errors. The issuer of the first U.S. Bitcoin futures-linked ETF, the ProShares Bitcoin Strategy Fund, has closely tracked Bitcoin’s price since its inception in October 2021. Coinbase Borrow, a program that allowed customers to receive regular currency loans of up to $1 million against their Bitcoin (BTC) holdings, is shutting down.