The underperformance stems from the costs associated with the fund’s structure. BITO does not purchase tokens, instead it holds BTC futures contracts on the Chicago Mercantile Exchange (CME). The fund must roll over the contracts every month as they expire, making it vulnerable to the price difference between terms. If next month’s contract trades at a premium to the nearest expiry – a phenomenon called contango and typical during a bull market – over a sustainable period, the fund will compound losses due to the “contango bleed.”
Colombia’s largest bank launches crypto exchange and peso-pegged stablecoin
Bancolombia launches Wenia crypto exchange and COPW stablecoin in Colombia. The new crypto exchange aims to onboard 60,000 users in...