The first Bitcoin ETF in the United States "has been fluttered", and the GBTC discount stays at a historical low

The data shows that the situation is not optimistic in terms of institutional participation in Bitcoin at the end of the year.

Institutional demand for Bitcoin (BTC) was clearly insufficient at the end of the year because data showed the “underperformance” of the first Bitcoin futures exchange traded fund (ETF) in the United States.

As market commentator Holger Zschaepitz pointed out on December 29, the ProShares Bitcoin Strategy ETF (BITO) is now trading at nearly 30% lower than its issue price.

ProShares ETF fails in 2021

Among the node signs about Bitcoin sentiment, the hype sentiment that accompanied the launch of BITO in the third quarter has been greatly cooled.

From the record-breaking volume on the first day to the current state, the ETF's performance in 2021 is even worse than the troubled Bitcoin spot price.

"The first Bitcoin futures ETF in the United States was a dumb gun, at least this year," Zschaepitz commented.

At the same time, as reported by Cointelegraph, Grayscale Bitcoin Trust (GBTC) continues to trade at its largest ever discount to Bitcoin's spot price or net asset value.

At the same time, GBTC plans to convert to ETFs next year, depending on the attitude of US regulators towards spot-based products, which have not yet been launched.

Strange historical highs persist in stocks

Although detractors describe the GBTC discount as a “very worrying situation”, the activities of investors themselves do not point to indifference towards Bitcoin.

Morgan Stanley has increased its GBTC allocation this month and last month, which shows that long-term sentiment remains strong.

"As 2021 draws to a close, the SPX index is approaching the 92-year logarithmic resistance line. Given that it is based on the index's peaks in 1929 and 2000, it may become a terrible obstacle. ~ Reuters."

-PiQ (@PriapusIQ) December 28, 2021

At the same time, the macro market shows strange characteristics. The Standard & Poor's 500 Index is at an all-time high, challenging a trend line that has been marking top resistance since it was established nearly 100 years ago.

However, below the surface, everything is not as it seems.