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2022 is Looking Like a Bad Year for the First Bitcoin ETF

2022 is Looking Like a Bad Year for the First Bitcoin ETFs

As per the report of The Financial Times investors have lost $1.2 billion in the first year of ProShares’ Bitcoin futures exchange-traded fund (BITO). In fact, it has spent a record-breaking amount of money from its ETF.

History of BITO

On October 19, ProShares introduced the first Bitcoin futures exchange-traded fund (ETF) in the United States, marking a significant milestone for the cryptocurrency market.

ProShares introduced the first short Bitcoin ETF in June, allowing investors to wager against the value of the largest cryptocurrency in the world.

On its first day of trading, it surpassed $500 million in volume, making it the second most actively traded fund in history.  Moreover the company broke records in its first week by amassing $1 billion in AUM in only two days.

After a year on the market, BITO has fallen by a stunning 70% from its first launch, making it one of the most disappointing debuts ever.

While some ETFs had even higher declines, their smaller size meant they burned through less capital. The Global X Blockchain Exchange Traded Fund (BKCH) is one example; it has fallen 77% from its peak value of $125M.

The pendulum might swing back in BITO’s favor, according to Todd Rosenbluth, head of research at consultancy VettaFi, who spoke to the Financial Times; nevertheless, ProShares would require a lot of faith in its product to keep it from sinking.


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