There’s a downside to SEC Chair Gary Gensler’s preference for an exchange-traded fund focused on bitcoin futures. But it’s unlikely to deter investors.
Improved prospects of the U.S. approving a futures-based bitcoin (BTC) exchange-traded fund (ETF) has brought cheer to the crypto market.
“I am expecting the average negative yield to be at around 5%-10% on the CME bitcoin futures curve,” said Patrick Heusser, head of trading at Swiss-based Crypto Finance AG. In plain English, if the price of bitcoin doubles in the next 12 months, the ETF would underperform by at least 5%-10%.