{"id":51649,"date":"2021-10-22T16:59:50","date_gmt":"2021-10-22T13:59:50","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=51649"},"modified":"2025-09-03T00:56:29","modified_gmt":"2025-09-02T21:56:29","slug":"first-u-s-bitcoin-etf-nears-cme-futures-buying-limit","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/first-u-s-bitcoin-etf-nears-cme-futures-buying-limit\/","title":{"rendered":"First U.S. Bitcoin ETF Nears CME Futures-Buying Limit"},"content":{"rendered":"

The ProShares futures-based Bitcoin ETF<\/a> (BITO) has nearly reached the maximum number of contracts permitted under Chicago Mercantile Exchange (CME) rules. Bloomberg<\/a> reports.<\/p>\n

In the first two days of trading, the fund purchased 1,900 October-dated futures. CME caps the number of near-term contracts at 2,000.<\/p>\n

Due to heightened client demand, ProShares had to switch to November-dated futures, adding 1,400 contracts to the portfolio. Under CME rules, the aggregate number of such derivatives is capped at 5,000.<\/p>\n

As of the third trading day, BITO stood at<\/a> 1,679 October and 2,133 November contracts, with a total value of $1.2 billion.<\/p>\n

Allocation of assets to longer-dated futures could further dampen ETF performance relative to Bitcoin. This would stem from the need to pay a rollover in contango conditions, the agency noted.<\/p>\n

\n

\u201cThe ETF must ‘copy’ the price of the first cryptocurrency at ever-higher prices as it moves further along the futures curve. This increases tracking error<\/em><\/a>.\u201d<\/em>, \u2014 said Nate Geraci, president of The ETF Store.<\/p>\n<\/blockquote>\n

The analyst suggested that ProShares’ experience could spur the SEC to accelerate approval of a spot ETF that invests directly in the leading cryptocurrency.<\/p>\n

Morgan Stanley recommended<\/a> that advisers refrain from buying bitcoin ETFs for clients.<\/p>\n

Subscribe to ForkLog’s YouTube channel on YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

The ProShares futures-based Bitcoin ETF (BITO) has nearly reached the maximum contract volume permitted under Chicago Mercantile Exchange rules. Bloomberg reports.<\/p>\n","protected":false},"author":1,"featured_media":51650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,383,1211],"class_list":["post-51649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-cme-group","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/51649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=51649"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/51649\/revisions"}],"predecessor-version":[{"id":51651,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/51649\/revisions\/51651"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/51650"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=51649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=51649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=51649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}