The ProShares Bitcoin Strategy ETF is in a cup-with-handle base, the first base pattern for this popular cryptocurrency ETF since January.
The new pattern offers a buy point at 17.70, according to IBD MarketSmith. The leading cryptocurrency, Bitcoin also formed a cup with handle. It topped the $30,927 buy point but has fallen below it. Grayscale Bitcoin Trust is extended from a double bottom's 16.95 entry.
BITO was the first Bitcoin futures-linked ETF and was launched in October 2021, just before Bitcoin hit its all-time high of $64,455.37. It was launched soon after the SEC approved that type of ETF. The ProShares ETF holds futures contracts that seek to track Bitcoin's spot price.
The fund is up nearly 60% for the year, while Bitcoin has nearly doubled during the same period.
Grayscale Bitcoin Trust has more than doubled so far in 2023, adding 140% after its December close at 8.29.
The fund holds $18.9 billion in assets under management and passively invests in Bitcoin. Unlike BITO, it comes with a steep minimum investment requirement of $50,000. Each GBTC share holds 0.0009 Bitcoin.
The fund crafted a much different chart pattern than BITO. GBTC broke out of a double bottom on June 20 and last week reached a 23% gain from that entry.
BlackRock Applies For iShares Bitcoin ETF
In June BlackRock, the largest investment fund, joined other crypto fund managers including GrayScale in filing an application for a spot-price Bitcoin ETF in the U.S. The Securities and Exchange Commission has yet to approve such an ETF, although they have been in place in Canada and Europe for a while now.
BlackRocks's iShares ETFs offer a low expense ratio for investors compared with GrayScale's hefty 2% management fees. The average expense ratio for ETFs can be lower than 1%. The iShares Core S&P 500 ETF, for example, has an unbelievably low expense ratio of 0.03%.
GrayScale has been trying to enter the spot Bitcoin market as well and has a pending application since 2021 to convert GBTC into an ETF that tracks spot Bitcoin prices.
Amid these moves by big fund managers, long time crypto holder Michael Saylor tweeted that Bitcoin was coming to Wall Street.
According to a JPMorgan report, "spot ETFs are more likely than futures based ETFs to reflect real time supply and demand and their approval in the U.S. would bring more liquidity and enhance price transparency in spot bitcoin markets."
Please follow VRamakrishnan on Twitter for more news on the stock market today.
