The cryptocurrency market is slowing down! Traders happy with fall in Bitcoin futures ETFs

Investor interest in Bitcoin futures ETFs has waned due to the recent decline in Canadian currencies. Data shows that a number of Bitcoin contracts are currently held by the ProShares Bitcoin Strategy ETF (BITO-US), the first Bitcoin futures contract listed in the United States only in October of last year, falling to its highest point. low since November of last year, according to data.

As of January 11, BITO held a total of 4,904 futures contracts on the Chicago Mercantile Exchange (CME), the lowest level since November 2021. BITO's assets under management also fell from a high of 1, $4 billion last November to $1.16 billion today. .

Blockchain data firm ArcaneResearch estimates that investor interest in BITO has plummeted due to the recent poor performance of Bitcoin, which fell from $ 69,000 in November to $ 43,700 today. BITO also has higher operating costs. Since its listing, BITO has fallen more than 30% and is currently trading at $ 27.62, making it one of the top 10 worst ETFs.

The massive withdrawal of digital currency, coupled with the Fed's plans to abandon its monetary policy, has been hampered by the Fed's plans to raise inflation and reduce its debt balance, causing the value of Bitcoin to plummet. .

Nearly $1 billion was traded when the ETF was started. Investments also increased the data by $1 billion in two days, indicating a firm grip on Bitcoin.

Due to various governance issues, ETFs that directly hold Bitcoin have yet to appear in the United States. Strategic bitcoin ETF ProShares often trades bitcoin futures and was formed in a joint venture, and SEC Chairman Gary Gensler said it provides significant protection for investors.

Bloomberg analyst Athanasios Psarofagis said current performance does not necessarily affect companies' future growth, and while there are some negative points after the old ETFs were released, they can raise funds on the Marlet.