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

Bitcoin
(BTC)
institutional
demand
is
conspicuously
wanting
at
the
end
of
the
year
as
data
flags
the
“underperformance”
of
the
United
States’
first
Bitcoin
futures
exchange-traded
fund
(ETF).

As

noted

by
markets
commentator
Holger
Zschaepitz
on
Dec.
29,
the
ProShares
Bitcoin
Strategy
ETF
(BITO)
is
now
trading
at
nearly
30%
below
its
launch
price.

Anticlimax
rounds
out
2021
for
ProShares
ETF

In
a
sign
of
the
times
regarding
Bitcoin
sentiment,
the
hype
that
accompanied
BITO’s
launch
in
Q3
has
died
down
considerably.

Going
from
record-breaking
volume
on
its
first
day
to
its
current
state,
the
ETF
has
even
underperformed
the
embattled
Bitcoin
spot
price
in
2021.

“The
first
Bitcoin
futures
ETF
in
the
US
was
a
dud,
at
least
this
year,”
Zschaepitz
commented.


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

Meanwhile,
as
Cointelegraph

reported
,
the
Grayscale
Bitcoin
Trust
(GBTC)
continues
to
trade
at
its
biggest-ever
discount
to
Bitcoin
spot
price,
or
net
asset
value.

GBTC’s
conversion
to
an
ETF,
slated
for
next
year,
meanwhile,
depends
on
the
tone
of
U.S.
regulators
regarding
spot-based
products,
these
are
yet
to
debut.


GBTC
price
vs.
holdings
vs.
GBTC
premium
chart.
Source:
Coinglass

Eerie
all-time
highs
persist
in
stocks

While
detractors

describe

the
GBTC
discount
as
“very
concerning,”
activity
from
investors
themselves
does
not
unanimously
point
to
apathy
when
it
comes
to
Bitcoin.



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

Morgan
Stanley

upped

its
GBTC
allocation
this
month
and
last
in
a
sign
that
longer-term
sentiment
remains
strong.

Macro
markets,
meanwhile,
display
curious
characteristics.
The
S&P
500
is
at
record
highs,
challenging
a
trendline
that
has
marked
topside
resistance
since
its
inauguration
almost
100
years
ago.

Below
the
surface,
however,
all
is
not
as
it
seems,
warnings

revealed

this
week.

read original article here