ProShares Strategy Exchange Traded Fund (BITO) recently suffered a low interest rate since BTC price’s volatile status. BITO actually has the lowest CME contract amount ever since November 2021.

According to Proshares’ latest update on January 11, the Bitcoin futures exchange-traded fund (ETF) has a total of 4,904 Chicago Mercantile Exchange (CME) futures contracts. In last November, BITO’s assets under management (AUM) has retraced $1.16 billion from a high of $1.4 billion. It is the exact amount that it achieved two days ago, October 18th 2021 when its AUM reached $1.16 billion.

Arcane Research, a cryptocurrency analytics firm, recently analysed the reasons for the BITO retrace. According to the team, Bitcoin’s current price is $43,700. It has fallen since November 10th when it reached $69,000. Arcane Research has also suggested another cause for the fall in BITO Interest. It is due to the high costs of running futures-based ETFs. Each month’s rolling cost will be higher than current BTC prices.

Arcane Research also shows that an ETF that is spot-based in Bitcoin would not have to pay the same steep fees over time. SEC approval has yet to be granted for such ETFs. However, Fidelity Investments will start approving them by January 20.

There are also a handful of other BTC futures ETFs which have not increased their AUMs. These assets make up a small fraction of BITO’s total assets. Valkyrie’s Bitcoin futures ETF, launched a few days following BITO, currently stands at $71.9million.

An ETF for Bitcoin Futures is an agreement in which futures contracts are purchased or sold at a later date. However, they don’t own any bitcoin. Also, the futures contracts are used to trade bitcoin’s actual price.

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