Since its listing, the U.S. Bitcoin spot ETF has performed well, and in January, multiple fund companies have submitted over 15 applications for leveraged Bitcoin ETFs. Bloomberg ETF analyst Eric Balchunas is surprised by this unprecedented situation.
(Previous summary:
Bitcoin falls below $41,000, Ethereum loses $2,500, and GBTC’s sell-off is not over yet.
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(Background supplement:
Tuttle Capital submits six Bitcoin spot leveraged and inverse short ETFs to the SEC.
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After the official listing and trading of 11 U.S. Bitcoin spot ETFs, the total trading volume exceeded $10 billion within a week. As the Bitcoin spot ETF successfully attracts the market, many fund companies have also submitted more leveraged products.
Bloomberg ETF analyst James Seyffart tweeted this morning (19th) that well-known fund management company Direxion has submitted five applications for leveraged Bitcoin ETFs, including 2x, -2x, 1.5x, -1.5x, and -1x leverage.
Even before Direxion, many issuers such as Tuttle Capital, Rex Shares, and ProShares had already submitted similar applications. ProShares submitted five leveraged Bitcoin spot ETF applications on the 16th, including ProShares UltraShort Bitcoin ETF (-2x), ProShares ShortPlus Bitcoin ETF (-1.5x), ProShares Inverse Bitcoin ETF (-1x), ProShares Plus Bitcoin ETF (+1.5x), and ProShares Ultra Bitcoin ETF (+2x).
Tuttle Capital Management also submitted applications for six leveraged Bitcoin ETFs to the SEC in early January, including 1.5x, 1.75x, and 2x long and short ETFs for Bitcoin spot.
Another Bloomberg ETF analyst, Eric Balchunas, responded to this by saying that the latest trading volume of nine Bitcoin spot ETFs (excluding GBTC) has increased by 34% compared to yesterday, reaching $1.05 billion, while GBTC’s trading volume is $1.059 billion, a decrease of 24% compared to yesterday.
Balchunas commented with surprise:
However, Balchunas also added that GBTC’s discount has reversed and fallen to -0.96%. He said:
Due to higher management fees and narrowing discount, investors are choosing to profit and are facing significant sell-offs. This has also led GBTC to continue transferring BTC, with a total of 41,478 BTC (worth about $1.784 billion) transferred to Coinbase since the listing of the Bitcoin spot ETF. This may be one of the reasons for the continuous decline in Bitcoin prices.
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