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.”

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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Bitcoin (BTC) climbed above $28,000 after an agreement on a deal to raise the U.S. debt ceiling, but the crypto still appears on track for its first monthly loss since December. The leading cryptocurrency by market value traded as high as $28,400 late Sunday, up from about $25,900 the previous week. At press time, bitcoin is changing hands at just under $28,000. Prices, however, were still down about 5% for May in what would be the first monthly decline of the year, assuming things hold through Wednesday. Ether (ETH) at the moment is up modestly in May after trading in a tight range for most of the month. Analyst Matteo Bottacini at Crypto Finance AG said in a morning note that he sees potential for ether and other altcoins to outperform thanks to positive narratives surrounding the Ethereum network, such as the all-time high in staked ether.

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

The trio visited Dresden, NY, home of Greenidge Generation’s bitcoin mining operation, which has become a lightning rod in the wider debate over Bitcoin’s environmental impact and, in particular, the political battles over New York State’s move last year to impose a ban on new mining projects. They found that both sides have made wildly exaggerated claims about the harm or benefits of Greenidge’s operation. New York Assemblywoman Anna Kelles, a Democrat, has repeatedly made the false claim that the facility is heating nearby Seneca Lake and killing aquatic life. At the same time, many mining advocates dramatically overstate community benefits such as the number of jobs created.

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Digital Currency Group (DCG), the parent company of CoinDesk is closing down its trade execution and prime brokerage services unit, TradeBlock, citing crypto winter and regulatory uncertainties. The shutdown of the unit, which provides trading services to institutional investors, will be effective as of May 31, a DCG spokesperson told CoinDesk. TradeBlock was acquired in 2020 by CoinDesk, and was later spun out as its own standalone business. CoinDesk kept the index data operating from the deal, which was rebranded as CoinDesk Indices, and “has proven to be a successful acquisition,” the spokesperson said. The story was first reported by Bloomberg.

In addition to its untapped potential, crypto and blockchain have come to be defined by such features as decentralization, security, transparency, efficiency, innovation and financial inclusion. Many of these facets are attractive to financial advisors as they scan the macroeconomic landscape for investment opportunities for their clients. With a difficult 2022 behind us – during which almost every asset class went down – and the traditional 60/40 portfolio had its worst year in over a century, it is important for advisors to be open to possibilities in the future landscape to rebuild, protect and grow their client portfolios.