ProShares’ Bitcoin ETF is about to reach the limit on the number of futures contracts allowed, as it quickly became very popular.
After just a few days of trading, the ProShares ETF reached 1,900 contracts in October and has a limit of 2,000 for the coming month imposed by the Chicago Mercantile Exchange.
There are already 1,400 contracts for November and a total maximum limit of 5,000 open contracts. One solution to the case could be to offer longer contracts, but this would create the potential danger of distancing oneself too much from the spot price of Bitcoin.
The futures-based Bitcoin ETF became the first to reach $ 1 billion in assets under management in just two days, breaking an 18-year record previously held by a gold-based ETF that did so in three days.
According to Eric Balcunas, the momentum will still be difficult to stop at this stage.
“BITO’s unprecedented early volume makes it like a snowball rolling down as liquidity and assets create even more liquidity and assets.”
The success of the ETF is seen by some as a solid basis for future approval of a spot-based Bitcoin ETF, with Grayscale already anticipating this and preparing to transform its popular Bitcoin Trust into a physically secure product based on the spot market. Bitcoin.
After the parabolic rise, we observe the necessary adjustment to “cool the passions”, reflecting a partial collection of profits. At the moment, the price is testing the upper part of the upward channel and the support zone around the psychological $ 60,000 against the background of the Fed’s announcement that the tightening of monetary policy will be imposed on schedule, and with the strengthening of the US dollar we can expect The interest in potentially new long positioning is around the support zone between $ 52,300- $ 53,800. Alternatively, with a rebound from the current levels, we could see a test of the recent ATH and an attempt to reach a new one.
Junior Trader Nikolay Stoychev