Bitcoin's recent rally has revived concerns about a market peculiarity that puts traders of futures and futures-based exchange-traded funds at a disadvantage relative to coin holders.
"This generally points to why a spot bitcoin ETF would be superior for most investors vs. a futures-based ETF. People just want to own bitcoin, safely, with no ifs, ands, or buts. A spot-based ETF would achieve that goal," Hougan added.Last month, bigwigs from traditional finance like BlackRock , Invesco , Fidelity, and others filed spot-based bitcoin ETF applications with the U.S. Securities and Exchange Commission . Bitcoin rallied nearly 12% in June.
In other words, the spot-based ETF will be a better investment avenue than futures-based products like ProShares' Bitcoin Strategy ETF, which have underperformed the cryptocurrency this year. ProShares' futures-based ETF, which debuted in October 2021, is the world's largest and most actively-traded futures-based ETF.
"For context, the 30-day annualized BTC basis just hit 19%, which is the highest value since October 2021, when BTC was trading at above $60,000," Kim said."The 30- and 60-day futures are the preferred vehicles for many investors, and more so for bitcoin than for ether."
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