#57 ETF Do You Mean?

Proshares Bitcoin futures ETF set to launch on NYSE tomorrow

Oct 18, 2021

What to know where crypto markets are heading next? Check out the Foot Guns Cheat Sheet.

It was announced over the weekend that a Bitcoin Futures ETF will launch this week and confirmed this morning to go live Tuesday October 19th on the NYSE.

*Walter Bloomberg @DeItaone

*PROSHARES BITCOIN FUTURES ETF WILL LAUNCH ON NYSE TUESDAY: NYT

Is this a good thing? This news has been received with mix response including statements from global macro investor, Raoul Pal, who has recently become obsessed with crypto, that the ETF will be a net lose for retail investors.

Raoul Pal @RaoulGMI

This is the old financial market trick - you now have to add multiple new intermediaries who all make profits - the ETF provider, clearing house, futures broker, administrator, auditor, law firm, CME and hedge fund arbs. Wall street gets richer. Retail investors lose. Again.

Other smaller are investors have been quick to point to oils crash into negative numbers which created contango with the oil futures ETF leading to a drastic underperformance.

Joe Orsini, CFA @JoeOrsini_

In just over one year, a futures-based ETF underperformed spot by 54.6%. Even with "backwardation" this year and returns that are similar (spot +67% and USO ETF +72%), the long-term damage has already been done. Again, in the last five-years: Spot crude +61.5% USO -37.9% 9/n

So, do you buy this news?

The CEO of Three Arrow Capital, Signapore based crypto investment firm, has this to say.

Zhu Su 🔺 @zhusu

Buy the rumor buy the news buy the dip light the fuse $BTC #Bitcoin

Here at Foot Guns we report the news for your entertainment. If you want to know where markets are going check out the Foot Guns Cheat Sheet.

FG Cheat Sheet