ProShares dismisses concerns over tracking futures cost in First Mover Americas.

The Growing Influence of Blockchain Technology in the Finance Industry

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ProShares Bitcoin Strategy Fund: Overcoming Tracking Errors

ProShares, the issuer of the first U.S. bitcoin futures-linked exchange-traded fund (ETF), has debunked concerns about tracking errors associated with trading derivatives. The ProShares Bitcoin Strategy Fund, launched in October 2021, allows investors to gain exposure to bitcoin (BTC) without owning the cryptocurrency. The ETF invests in regulated and cash-settled bitcoin futures listed on the Chicago Mercantile Exchange (CME). Initially, there were concerns that the costs associated with rolling over or selling expiring futures contracts and buying the next set would result in significant underperformance. However, Simeon Hyman, global investment strategist at ProShares, clarified that these concerns are misguided, as the ETF has closely tracked bitcoin’s price since its inception. This development highlights the increasing accessibility of bitcoin investments for traditional investors through regulated financial products.

Cryptocurrency Market Volatility and Chainlink’s Interoperability Protocol

Cryptocurrencies experienced a slide, with bitcoin (BTC) dropping to its lowest point in a month at $29,593, and ether (ETH) dipping below $1,900. However, amidst the slump, Chainlink’s native token, LINK, demonstrated substantial gains, surging 15% to surpass $8 for the first time in three months. This surge was primarily due to the release of an interoperability protocol by Chainlink, enabling communication between blockchains and banks. The protocol was tested by interbank communication system Swift, indicating the potential for increased adoption of blockchain technology within the traditional banking sector. While Ripple’s XRP also experienced a decline of 6% in 24 hours, it had recently seen considerable price growth following a partial court victory against the U.S. Securities and Exchange Commission (SEC). These fluctuations in the cryptocurrency market emphasize the need for interoperability solutions and regulatory clarity to stabilize prices and boost investor confidence.

Coinbase Borrow Shuts Down Amidst Regulatory Scrutiny

Coinbase Borrow, a program that allowed customers to receive currency loans against their bitcoin (BTC) holdings, announced its closure. The decision reflects Coinbase’s strategic focus on products that its customers value the most. Customers who hold loans through the program have until November 20th to repay any outstanding loan balances. Coinbase’s move to wind down Coinbase Borrow comes amidst increased regulatory scrutiny from U.S. authorities, particularly the Securities and Exchange Commission (SEC). The exchange has been reevaluating its product offerings and redirecting its resources to comply with regulatory requirements while maintaining its global presence.

Chart of the Day

The chart illustrates the daily net flow of ether into wallets tied to centralized exchanges.
On Tuesday, centralized exchanges received a net inflow of 78,861.9 ETH, the highest single-day inflow since May 1.
Increased flow of coins into exchanges often leads to price volatility.
Source: Glassnode
Omkar Godbole

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UPDATE (July 21, 13:00 UTC): Rewrites headline. Edited by Sheldon Reback.

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ProShares dismisses concerns over tracking futures cost in First Mover Americas.