Market Update
Bitcoin gained +43% in October and reached a new record high of $66,974 on October 20th. Bitcoin is up nearly 115% YTD.
The month was dominated by news related to the first futures-based bitcoin ETFs. The two ETFs that began trading in October are registered under the Investment Company Act of 1940 (‘40 Act) and gain exposure to bitcoin through futures listed on the Chicago Mercantile Exchange (CME). NYDIG views these strategies as trading tools, not investment vehicles, due to the underlying exposures and structural limitations. The costs to roll futures and bitcoin futures positions limits imposed by the CME may result in the performance of these ETFs deviating from spot bitcoin, which is what we’ve seen during the first few weeks of trading.
