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12 October 2021

CoinDesk: Dying for a Bitcoin Futures ETF? Watch Out for ‘Contango Bleed’

Raluca Boaru

Raluca Boaru

Business Development Manager at Crypto Finance (Infrastructure Services) AG

About the author

Source: CoinDesk | Author: Omkar Godbole

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.

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“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%.

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