Bitcoin futures ETF mania cools as Wall Street hits pause button
What was expected to be a wave of U.S. exchange-traded funds tied to Bitcoin futures has all but dried up -- for now -- after off-the-charts demand for the first one rattled Wall Street's all-important middlemen.
Wall Street analysts as many as four Bitcoin futures ETFs to begin trading in October following the SEC' s tacit approval of the structure; instead only two products, fromProShares $ProShares Bitcoin Strategy ETF (BITO.US)$ and Valkyrie Investments $Valkyrie Bitcoin and Ether Strategy ETF (BTF.US)$, debuted.
The delay is due in part to reticence among futures commission merchants, which act as an intermediary between derivatives-backed funds such as the $ProShares Bitcoin Strategy ETF (BITO.US)$ and the exchanges where those contracts trade. Known as FCMs , these firms -- typically banks -- handle buy and sell orders for futures contacts on behalf of their clients and then settle those trades with exchanges such as the Chicago Mercantile Exchange.
![Bitcoin futures ETF mania cools as Wall Street hits pause button](https://ussnsimg.moomoo.com/814031526557341185.png/bigmoo)
In normal circumstances, it's a fairly mechanical, out-of-the-spotlight relationship. However, the seen for $ProShares Bitcoin Strategy ETF (BITO.US)$ -- which last monthaccumulated more than $1 billion in assets in just two days, among the biggest launches ever -- has FCMs thinking twice. The cash influx quickly ate up the balance sheet of the firm acting as an FCM for BITO at its launch, putting regulatory capital limitations against the Bitcoin futures exposure in sight, according to a person familiar with the matter.
![Bitcoin futures ETF mania cools as Wall Street hits pause button](https://ussnsimg.moomoo.com/2881902389279463283.png/bigmoo)
![Fund distribution of BITO](https://ussnsimg.moomoo.com/5941277065174354166.png/bigmoo)
![Fund flow of BITO](https://ussnsimg.moomoo.com/8565759571540320376.png/bigmoo)
How do you think about Bitcoin futures ETFs? Will you invest in it?![]()
Source: Bloomberg
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Squeaky88 : nice
Bawlz09 : good info to know cheers for the work you put in
kennyang1977 : Buy the dip
Samuelwinmore : Wow
Dartist : wow
Andjoy99 : nice
matboyboy : Thank you for the article
102564541 : So many ETFs in a short period of time
Soh777 : As long as Bitcoin goes up, Bitcoin ETF will follow to go up as well. This ETF is worth to invest too
James Lee1 : What a time to cool down
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