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Just days after launch, the ProShares Bitcoin Strategy ETF (BITO) already owns nearly 1,900 contracts for October, and Chicago Mercantile Exchange (CME) limits the number of front-month contracts to 2,000.
Record trading volume
After two days of trading, the fund already had more than $1 billion under management, read the report.
The Bitcoin Futures ETF amassed 1,400 November contracts in order to avoid breaching the limit, but judging by the unprecedented early volume, BITO could soon hit the maximum total position of 5,000 contracts.
The launch of competing products, such as Valkyrie‘s and VanEck’s Bitcoin Strategy ETFs, could ease the demand for BITO.
One solution to avoid hitting the limit would entail BITO to spread out its holdings into longer-dated contracts, but that poses a risk of further distancing the fund from the performance of Bitcoin.
“The end result is the ETF will start taking on potentially significant tracking error versus the spot price of Bitcoin,” president of advisory firm The ETF Store, Nate Geraci, told Bloomberg.
“The ETF is forced to obtain Bitcoin price exposure at higher and higher prices as it goes further out on the futures curve,” he explained.
Spot-based Bitcoin ETFs to the rescue
“The unprecedented early volume in BITO makes it like a snowball rolling downhill, as liquidity and assets beget more liquidity and assets,” according to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, who commented for the report.
“The new ones will have some selling points such as only holding the front month or being cheaper and that will help, but it is nearly impossible to steal volume in the short or medium-term,” he added, arguing that the momentum behind the ProShares fund will be hard to stop.
According to Balchunas, BITOs success and “the clear issue of the potential capacity of futures” may prompt the SEC to speed up the approval of Bitcoin spot ETFs.
Canada's Blueprint
In March, Canada made history by launching the first Bitcoin ETF in North America which increased the agitations for the US to follow suit. The first was the Purpose Bitcoin ETF and according to the firms statement, “the ETF will invest directly in physically settled Bitcoin, not derivatives.” This is a major distinction from the one approved by the US SEC that is a futures-based ETF, but still analogies can be made.
The launch of the Purpose Bitcoin ETF opened the floodgates for the approval of more ETFs in Canada such as 3iQ Coins and CI Galaxy Bitcoin within weeks. It can be safe to say that the SEC giving the greenlight to ProShares Bitcoin Strategy ETF will be the beginning of a wave of approval of ETFs. Already, the second Bitcoin ETF from Valkyrie Bitcoin futures ETF is scheduled for launch on October 22nd with applications from Invesco and others reportedly touted to gain approval.
Purpose has gone on to notch $1.2 billion in assets while Canada‘s Bitcoin futures ETF only has $7.6 million while making only 0.3% of the market share. This is a huge indicator that ProShare’s futures ETF may not prove to be popular amongst investors. Already, it has received a slew of criticism for not being able to accurately track the price of the asset and may be subject to the contango effect.
The ETF markets in the US may become polarized with the bulk of retail traders preferring one while institutional investors preferring the other. This pattern holds for Canadian bitcoin ETFs. According to reports, the bulk of Purpose ETF holders are unknown while CI Galaxy comprises mostly institutional investors.
Spot ETFs Could Happen In The US
Bitcoin spot ETFs are preferred over futures around the world and their staggering adoption could sway the SEC to change its stance. Aside from Canada, Brazil, Germany, and Switzerland are among the countries that have launched their Bitcoin spot ETF to acclaim.
The meteoric growth of these funds is not far-fetched as they offer a range of options to potential investors. Price tracking is accurate in spot ETF and is a cheaper alternative for investors. Matt Hougan, CIO of Bitwise noted that future-based ETFs can cost investors an extra 5% annually to roll into a new futures contract.
Gary Gensler stated that futures ETFs offer investors increased levels of security which is why the SEC seems satisfied and has granted approval. Perhaps, the SEC is testing the waters with a futures-based ETF before eventually approving a Bitcoin spot ETF. Already, Grayscale has filed an application that will seek to convert its Grayscale Bitcoin Trust to a spot ETF.
With the financial markets nearly discounting the prospects of a first U.S. rate hike by next July in recent days, the dollar has become more sensitive to risk sentiment.To get more news about ic markets registration, you can visit wikifx.com official website.
On Friday, the USD/JPY settled at 113.495, down 0.522 or 0.46%.
The Dollar/Yen lost ground despite the 10-year U.S. Treasury yield hitting 1.68% on Friday, after the latest weekly jobless claims report came in lower than expected in the previous session.
Bullish investors may have also been influenced by comments from a Fed official. Fed Atlanta President Raphael Bostic told CNBC on Thursday that he sees an interest rate hike coming in the “late third, maybe early fourth” quarter of 2022, as inflation persists. This is later than the financial futures forecast calling for a July 2022 lift-off in rates. The remark may have encouraged a few long Dollar/Yen longs to take profits and pare positions.
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on October 20, 2021.
A trade through 114.694 will negate the closing price reversal top and signal the resumption of the uptrend.
The main trend will change to down on a trade through 110.826. This is highly unlikely but there is room to the downside before the next support level.
The closing price reversal top is a potentially bearish chart pattern, but it doesnt necessarily signal a change in trend. Often the chart pattern is designed to alleviate some of the upside pressure.
In this case, we could see a 2 to 3 day pullback into the short-term 50% level at 112.760 before new buyers show up.
The 12-day rally suggests that investors were pricing in the start of Fed tapering in November and a possible rate hike by July 2022. Now that the tapering is a given, traders may have decided to book profits while they await more clues about the timing of the first Fed rate hike at the November 2-3 monetary policy meeting.
The greenback had softened, especially against the yen, after Federal Reserve Chair Jerome Powell said on Friday it was time to start cutting back asset purchases, though not yet time to begin raising interest rates.
His remarks came as investors have priced in Fed rate hikes starting in the second half of next year and yet have begun to trim long dollar positions in anticipation that other central banks could get moving even sooner.
On Monday, the dollar was firm at $1.1643 per euro and found a footing on the yen at 113.54 after Friday's slide. The Australian and New Zealand dollars were held below the multi-month peaks they had scaled during last week. [AUD/]
The Antipodeans, along with sterling, had bounded ahead this month as traders scrambled to price in higher rates while inflation runs hot, with markets now eyeing a near 60% chance of a Bank of England hike next week.
Sterling was up 0.1% at $1.3772, but analysts were cautious about further gains especially as the Fed edges closer to tapering and policy tightening. The Aussie was steady at $0.7473 and the kiwi at $0.7157.
“Dollar risks remain skewed to the upside,” said Kim Mundy, a currency analyst at the Commonwealth Bank of Australia (OTC:CMWAY) in Sydney.
“(Fed) members are slowly conceding that inflation risks are skewed to the upside (and) the upshot is that interest rate markets can continue to price a more aggressive Fed Funds rate hike cycle which can support the dollar.”
This week, Australian inflation data due on Wednesday is likely to set the tone for the next stage in a tussle between traders and a resolutely dovish central bank.
On Thursday, U.S. growth data is expected to show a slowdown in growth as consumer confidence has faltered, but a surprise on either side might have consequences for the interest rate outlook.
Also on Thursday the Bank of Japan and the European Central Bank meet. Neither are expected to adjust policy, but in Europe market gauges of projected inflation are at odds with the bank's guidance.
In the background, traders remain nervous about trouble brewing at indebted developer China Evergrande Group. It surprised investors by averting default with a last-minute coupon payment last week, but other pressing debts loom.
China's yuan held just shy of a five-month peak in offshore trade at 6.3804 per dollar. Cryptocurrencies were steady below the heights reached last week, with bitcoin up 2% at $62,000.
In emerging markets the beaten-down Turkish lira was braced for selling as state banks are expected to follow a surprise rate cut from the central bank.
On July 17th, Davinci Dynamics will celebrate its 2021 OPEN DAY and officially launch its first electric motorcycle model: DC100.To get more news about davincidynamic, you can visit davincimotor.com official website.
As an electric motorcycle, the DC100 has powerful performance that can rival the liter bike (1000cc class). Also, it is a two-wheeled, dynamic robot offering an optimized, smart and passionate riding experience.
The DC100, a futuristic café racer, is designed to allow riders to fully experience the joy of riding: simple design, delivering outstanding performance, and effortless handling. In terms of performance, DC100 has a peak power of 100.75 kW (137 hp) and a peak torque of 850 Nm.
The charging of DC100 is widely accessible at great ease. The motorcycle is powered by a ternary lithium battery pack with high energy density. The battery, compatible with high-voltage platforms and capable of high-rate charge/discharge, can use level 3 DC fast charges which deliver a 0-100% charge in about 30 minutes.
On the basis of the outstanding performance, DC100 is a wheeled robot that offers an optimized control experience. With the vehicle’s integrated control system, DC100 delivers instant acceleration at every twist, and a simple and optimal balance of braking for enhanced safety and control. Unlike traditional motorcycle’s complexity control, DC100 combines reverse assist and hill assist – which ensures riders can reverse easily even on an incline and to optimize both balance and energy recovery.
In addition, DC100’s smartphone app – Davinci is launched at the same time. The phone is not only the key, and the dashboard. While riding, it integrated map navigation without having to switch apps. The app can also obtain real-time vehicle condition information, geo-locate the vehicle, and support vehicle system upgrades through FOTA.
Davinci Dynamics comprises a team of engineers, technologists and motorcycle enthusiasts with a common purpose – to create the perfectly balanced electric motorcycle.
The team are driven by the desire to make the real joy of motorcycling. They spent the last 7 years working under the radar with world-leading technology institutes – Tsinghua University to develop the motorcycle from the scratch. The achievement is the DC100 – a robotic two-wheeled vehicle with perfect combination of performance and ease of use.
Startup in Chinese original technology, Davinci Dynamics officially released the first product named DC100.This model is claimed to be robotic technology with an existing electric motorcycle.The unit looks like a conventional iron horse of a cafe racer, but with a futuristic robe.These two niremissions can provide different experiences for their users.To get more news about DC100, you can visit davincimotor.com official website.
Davinci DC100 has the shape of a coffee racer with a simple design.Using aluminum monocoke unit amounts.Having one side sided arms and a 17.7kWh giant lithium battery package, giving a box view but still ramping.Almost the whole engine part is gray, like a vehicle that's usually shown in video games.However, there are also orange choices.
According to the factory, DC100 has performances that can sing 1,000 cc motor sports.Acceleration record from 0 to 60 mph (100 kph) only 3 seconds.It has a peak torso of 627 ft-lb (850 Nm), and a maximum speed of 124 mph (200 kph).The hub engine gives a peak power of 100,75 kW (137 hp).Expected range 222 miles (357.51 km).
Battery and powertrain are placed under a large bodywork.Powered by lithium ternary batteries with high energy density.Kompatibel dengan platform tegangan tinggi dan dapat menggunakan pengisian cepat DC level 3. Generates a 0-100 percent power charge in about 30 minutes.
Davinci created this new model with Driving Assistance technology.When the driver chooses "D" on the gearbox, the motorcycle starts moving slowly forward as it takes off the brake wheel – like an automatic car.With an integrated control system, DC100 provides instant acceleration at each turn and optimal evacuation balance to enhance security.
In addition to a single digital instrument panel with a full color model, it is also provided with premium equipment.Brembo's handling of the dismissal and the shock suppressor rely on Ohlins.DC100 juga sangat cerdas. Using more sophisticated and intuitive driving technology.It's packed with a lot of high-tech sensors and electronic systems, aiming to make a safe motorcycle and seephysia possible.
Including Hill-start Assist Control (HAC), regenerative braking and upward descent balance, reverse assistance, Traction Control, and combined braking for maximum stop power.
This image has been resized to fit in the page. Click to enlarge.Acceleration, maximum speed, and battery life are the core indicators for electric vehicles. The best performance solution will only arrive when these indicators reach the perfect balance.
The DC100 is compatible with level 3 DC fast chargers which deliver a full charge in just 30 minutes. Alternatively, it can be charged using conventional home electrical outlets using a portable charger.
Thanks to a smart control system that seamlessly integrates multiple different motors, the DC100 delivers instant, adaptable acceleration at every twist of the throttle, and responsive, intuitive controls.
Unlike traditional motorcycles, where braking involves coordinating clutch, gears, front and rear brakes, the DC100 has a single brake lever linked to a braking system that integrates ABS, CBS, and TCS.
When Drive mode is selected and the brake lever is released, the DC100 creeps forward slowly at under 4 mph (7 km/h) to enable a smooth start. When putting into Reverse gear, the DC100 moves backward slowly with high torque so riders can reverse easily even on an incline.
When on a slope, the DC100 detects the angle of incline and applies Hill-start Assist Control. When the brake lever is released, the DC100 automatically moves forward and applies high torque at a low speed to ensure a smooth take-off. When riding downhill, the DC100 adjusts its speed to optimize both balance and energy recovery.
This image has been resized to fit in the page. Click to enlarge.As an electric motorcycle, the DC100 has powerful performance that can rival the liter bike (1000cc class). Also, it is a two-wheeled, dynamic robot offering an optimized, smart and passionate riding experience.The DC100, a futuristic café racer, is designed to allow riders to fully experience the joy of riding: simple design, delivering outstanding performance, and effortless handling. In terms of performance, DC100 has a peak power of 100.75 kW (137 hp) and a peak torque of 850 Nm.
The charging of DC100 is widely accessible at great ease. The motorcycle is powered by a ternary lithium battery pack with high energy density. The battery, compatible with high-voltage platforms and capable of high-rate charge/discharge, can use level 3 DC fast charges which deliver a 0-100% charge in about 30 minutes.
On the basis of the outstanding performance, DC100 is a wheeled robot that offers an optimized control experience. With the vehicle's integrated control system, DC100 delivers instant acceleration at every twist, and a simple and optimal balance of braking for enhanced safety and control. Unlike traditional motorcycle's complexity control, DC100 combines reverse assist and hill assist - which ensures riders can reverse easily even on an incline and to optimize both balance and energy recovery.
In addition, DC100's smartphone app - Davinci is launched at the same time. The phone is not only the key, and the dashboard. While riding, it integrated map navigation without having to switch apps. The app can also obtain real-time vehicle condition information, geo-locate the vehicle, and support vehicle system upgrades through FOTA.Davinci Dynamics comprises a team of engineers, technologists and motorcycle enthusiasts with a common purpose - to create the perfectly balanced electric motorcycle.
The team are driven by the desire to make the real joy of motorcycling. They spent the last 7 years working under the radar with world-leading technology institutes - Tsinghua University to develop the motorcycle from the scratch. The achievement is the DC100 - a robotic two-wheeled vehicle with perfect combination of performance and ease of use.
More technical details and pricing about DC100 will be released, followed by a limited global pre-order