May 2021 saw Bitcoin’s performance dip significantly, and recent history is repeating itself in December 2021. However, despite its slump, exchange-traded fund (ETF) investors continue to put in their money into products tracking Bitcoin’s futures.
In December so far, over $40 million has been taken in by the ProShares Bitcoin Strategy ETF (BITO). This was the third consecutive month of the ETF recording infusions. Since November end, the Valkyrie Bitcoin Strategy ETF (BTF) has also seen investors add $6.5 million.
However, in the same period, Bitcoin, along with other cryptocurrencies, has registered a slump. Through December, Bitcoin has lost 17%, as investors have started pulling away from risky investments.
BTF and BITO, the USA’s first two trading Bitcoin-futures funds, were both launched in October. Both their launches were successful, particularly BITO’s, which saw a lot of investor interest. While both funds have continued to register inflows, their latest inflows have dipped in comparison to what they registered immediately following their respective launches.
CFRA’s mutual fund and ETF research head Todd Rosenbluth has come out saying that despite the recent volatility of the crypto market, there are still many investors who are hopeful of long-term gains. That’s why investments continue to pour into the ETF space.
It’ll be interesting to see how quickly the crypto market recovers this time, as there are global fears among investors who fear that cryptocurrencies will either be banned or regulated in numerous countries. The recent surge in COVID cases due to the mutated Omicron variant has also played a part in investors pulling away from the crypto market.