How the Bitcoin ETF value plunged after initial hype

• Following the similar scenario around the Proshares bitcoin exchange-traded fund (ETF), Valkyrie’s bitcoin futures ETF, and the Vaneck bitcoin strategy ETF, interest in these products appears to have waned somewhat. 

• The financial expert went on to examine the Vaneck ETF, noting that lower management costs might set it apart from the competition.

• After reaching an all-time high on November 10, the Proshares Bitcoin ETF BITO has dropped 39% in the previous 64 days. Valkyrie’s bitcoin ETF has likewise lost 37% of its value in the previous two months.

First bitcoin futures ETF 

A large part of the cryptocurrency community has been anticipating the introduction of the first bitcoin exchange-traded fund (ETF) for years since a number of bitcoin ETF applications have been refused prior to 2021.

Finally, when the first bitcoin futures ETF in the United States was approved, Proshare’s bitcoin futures ETF set a new record, generating almost $1 billion in total activity in the first 24 hours. On January 13, 2022, the Proshares Bitcoin Strategy ETF (BITO) is trading at $26.96, down 39.12% from its high of 44.29 on November 10, 2021.

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In mid-November, Bloomberg contributor Katherine Greifeld stated that the “bitcoin futures ETF boom is fading.” He added, “While the Proshares fund absorbed $1.1 billion in only two days.”

Lower costs of ETF might set it apart from the competition

The Valkyrie BTF plunges by 37%, the Vaneck XBTF is down by 27%, and total open interest in Bitcoin futures is down more than 38% across cryptocurrency exchanges.

The Valkyrie Bitcoin Strategy ETF (BTF) saw an all-time high (ATH) of $26.67 per share on November 9, 2021, and is presently trading at $16.70 per unit, or 37.38 percent less than the ATH.

The Vaneck Bitcoin Strategy ETF (XBTF) is down only 27.70 percent from November 19, 2021, when it traded for $58.08 a unit and is now selling for $41.99. 

While the Proshares and Valkyrie ETFs emerged before Vaneck’s, all of the funds have a clear relation with the current price of bitcoin and the crypto asset’s futures markets.

since mid-November, Open interest in futures markets has decreased, as total bitcoin futures open interest across cryptocurrency exchanges. On November 11, 2021, there was approximately $28 billion in open interest in bitcoin futures.

The total open interest on the most major derivatives markets is now $17.22 billion. This corresponds to a 38.50 percent loss over the previous year.