• ProShares, the issuer of the first U.S. bitcoin futures-linked ETF, dismissed concerns that costs associated with tracking futures would lead to tracking errors.
• Cryptocurrencies declined on Thursday, with Bitcoin dipping to as low as $29,593 and Ether (ETH) falling below $1,900.
• Chainlink’s native token LINK surged 15%, rising above $8 for the first time in three months after Chainlink released this week an interoperability protocol that facilitates communication between blockchains and banks.
ProShares Dismisses Concerns Over Cost of Tracking Futures
ProShares, the issuer of the first U.S. bitcoin futures-linked exchange-traded fund (ETF), said concerns that costs associated with trading of the derivatives would lead to tracking errors are unfounded. The ProShares Bitcoin Strategy Fund began trading on the New York Stock Exchange in October 2021, allowing investors to gain exposure to bitcoin (BTC) without having to actually own the cryptocurrency. The ETF, the world’s largest crypto fund, invests in regulated and cash-settled bitcoin futures listed on the Chicago Mercantile Exchange (CME).
Crypto Assets Slump
Cryptocurrencies slid Thursday with bitcoin (BTC) dipping to as low as $29,593 during U.S. afternoon hours, near its lowest point in a month. Ether (ETH) buckled below $1,900 to change hands 1% lower than 24 hours before. Ripple’s XRP pared some of its impressive gains from previous days dropping some 6% in 24 hours with a price almost doubled to 93 cents a week ago following a partial court victory against the U.S..
Chainlink’s LINK Token Surges
The native token of the Chainlink ecosystem – LINK – defied slump and was the only crypto asset with sizable gains among 40 largest tokens by market capitalization . The token surged 15% through day , rising above $8 for first time in nearly three months after Chainlink released this week an interoperability protocol that facilitates communication between blockchains and banks tested by interbank communication system Swift .
Bitcoin Futures Costs Unfounded
From very beginning observers speculated BITO and other futures based ETF would significantly underperform Bitcoin due cost associated with rolling over or selling expiring futures contracts and buying next set . “Concerns about roll costs are misguided; BITO has closely tracked Bitcoin’s price since inception,“ Simeon Hyman , Global Investment Strategist at ProShares told CoinDesk in email interview .
Overall crypto markets declined on Thursday but one outlier – LINK – defying slump and surging above 8$ for first timein nearly 3 months after Chainlink released new protocol facilitating communication between blockchain & Banks . On other hand Proshares reasserted their position regarding cost associated with tracking future which it says is unfounded & BITO has been closely mirroring Bitcoin price since inception .