Bitcoin Strategy ETF Almost Reached the Upper Limit of Contracts in Just a Few Days

ProShares’ Bitcoin Strategy ETF became too popular in the early days after entering the market, almost reaching the limit for the number of allowed futures contracts.

The Chicago Mercantile Exchange set a limit of 2,000 contracts for the first month of trading for the Bitcoin Strategy ETF. However, after just a few days of trading, 1,900 contracts were signed. According to Bloomberg, 1,400 out of 5,000 allowed contracts for November have already been signed.

The solution to the problem could be offering longer contracts, but this also can provoke too much distancing from BTC prices.

Nate Geraci, president of ETF Store consulting firm, said the fund could begin to deviate from market prices.

Fortunately, the launch of competing products like the Valkyrie Bitcoin Strategy ETF on October 22nd and the VanEc ETF on October 25th could probably remedy the situation, which could reduce demand for the ProShares fund.

Recall that the ProShares ETF became the first fund in history to demonstrate the highest “natural” trading volume in just the first two days. By the end of the day, this figure grew up to $1 billion.

Erik Balchunas, the senior ETF analyst at Bloomberg, noted that the unprecedented early volume of BITO has turned it into a snowball “rolling up”, and this effect will be difficult to stop.

Balchunas also believes the success of Bitcoin futures products could accelerate the approval of a spot Bitcoin ETF.

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