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GBTC can’t compete with the real thing. We need to get everyone access to BTC.
Barry Silbert expressed: Not only is GBTC outperforming BITO, today it had higher trading volume too GBTC = $374mm BITO = $286mm
Jodie Gunzenberg, Managing Director at CoinDesk expressed: Everything wrong with wall street is in BITO. In just 6 days, it is underperforming GBTC by 7.5%, and the rolling cost doubled as ProShares moved half its positions out to Nov to deal with position limits set by the CME. More approved products are a positive but buyer beware.
Jodie also pointed to how the cost of contango more than doubled since BITO launch.
In the last year, contango costed 28%. That was before BITO was launched. As the rising demand for bitcoin futures forces buying into the later-dated contracts, the cost from contango gets even worse.
I just don’t see the point of investing in futures-based bitcoin ETFs when you can buy the asset in the spot market.
Tom Eckett also acknowledged: ProShares bitcoin ETF risks hitting futures contract limit after breaking record to $1bn.
Community response: Everything is wrong with Wall Street and that is why you should own Bitcoin.
No disagreement here. But somehow, buying Bitcoin is still “hard” for people. So when the SEC approves a futures-backed BTC ETF to “protect investors” as opposed to spot, you know something ain’t right.
I agree it was almost like a dirty move by the fed, as opposed to the cheers of the maxi’s
Guys. Let’s be honest for once. The structural BS of futures Bitcoin ETFs is because they need to build some kind of wall between their rule of laws and your lawless meta verse. Time will tell.
But Gary Gensler said this has better investor protection than a spot ETF because of many reasons.
There are many downsides to BITO, but saying that it underperformed GBTC by 7.5% over 6 days is misleading. GBTC discount is highly variable and can easily swing that much in either direction over short periods. If you want an accurate comparison, it has to be over 30+ days.
People were investing in MSTR as a proxy to investing Bitcoin.
How much of this is BITO being disconnected from spot price vs. people speculating the large GBTC discount and pending ETF proposal?
Not Unexpected. I think the people who invest in ETFs are those who see the value in it! Whoever likes it, invests there.
