First US Bitcoin ETF a ‘dud’ in 2021 as GBTC discount stays near record lows

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Bitcoin (BTC) institutional demand is conspicuously wanting on the finish of the yr as knowledge flags the “underperformance” of america’ first Bitcoin futures exchange-traded fund (ETF).

As noted by markets commentator Holger Zschaepitz on Dec. 29, the ProShares Bitcoin Technique ETF (BITO) is now buying and selling at almost 30% beneath its launch worth.

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In an indication of the occasions relating to Bitcoin sentiment, the hype that accompanied BITO’s launch in Q3 has died down significantly.

Going from record-breaking quantity on its first day to its present state, the ETF has even underperformed the embattled Bitcoin spot worth in 2021.

“The primary Bitcoin futures ETF within the US was a dud, a minimum of this yr,” Zschaepitz commented.

ProShares Bitcoin Technique ETF (BITO) vs. BTC/USD normalized chart. Supply: Holger Zschaepitz/Twitter

In the meantime, as Cointelegraph reported, the Grayscale Bitcoin Belief (GBTC) continues to commerce at its biggest-ever low cost to Bitcoin spot worth, or internet asset worth.

GBTC’s conversion to an ETF, slated for subsequent yr, in the meantime, relies on the tone of U.S. regulators relating to spot-based merchandise, these are but to debut.

GBTC worth vs. holdings vs. GBTC premium chart. Supply: Coinglass

Eerie all-time highs persist in shares

Whereas detractors describe the GBTC low cost as “very regarding,” exercise from traders themselves doesn’t unanimously level to apathy on the subject of Bitcoin.

Associated: 5 ways derivatives could change the cryptocurrency sector in 2022

Morgan Stanley upped its GBTC allocation this month and final in an indication that longer-term sentiment stays robust.

Macro markets, in the meantime, show curious traits. The S&P 500 is at document highs, difficult a trendline that has marked topside resistance since its inauguration virtually 100 years in the past.

Beneath the floor, nevertheless, all isn’t because it appears, warnings revealed this week.