Is there a correlation between contango and the performance of bitcoin ETFs?

5 answers

• Lakshit JainFeb 15, 2024 · 2 years ago
  Yes, there is a correlation between contango and the performance of bitcoin ETFs. Contango refers to a situation where the futures price of an asset is higher than its spot price. In the case of bitcoin ETFs, if the market is in contango, it means that the futures price of bitcoin is higher than its current price. This can have an impact on the performance of bitcoin ETFs as it affects the cost of rolling over futures contracts. If contango is high, it can result in higher costs for the ETF, which can negatively impact its performance.
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• piiJan 24, 2025 · a year ago
  Definitely! Contango can significantly affect the performance of bitcoin ETFs. When the market is in contango, it means that the future price of bitcoin is higher than the current price. This can lead to higher costs for the ETF, as it needs to constantly roll over its futures contracts. These higher costs can eat into the overall returns of the ETF and potentially result in underperformance compared to the underlying asset, bitcoin.
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• Shiven ChandraJun 23, 2022 · 4 years ago
  Absolutely! There is a clear correlation between contango and the performance of bitcoin ETFs. When the market is in contango, it means that the demand for bitcoin futures contracts is higher than the supply. This increased demand can drive up the price of futures contracts, resulting in higher costs for the ETF. As a result, the performance of the bitcoin ETF can be negatively impacted when contango is present. However, it's important to note that other factors, such as market sentiment and overall market conditions, can also influence the performance of bitcoin ETFs.
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• praveen dasFeb 20, 2024 · 2 years ago
  Yes, there is a correlation between contango and the performance of bitcoin ETFs. When the market is in contango, it means that the futures price of bitcoin is higher than its spot price. This can result in higher costs for the ETF, as it needs to constantly roll over its futures contracts. However, it's important to note that the impact of contango on the performance of bitcoin ETFs can vary depending on other market factors and the specific strategies employed by the ETF.
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• Mojibul HoqueMar 22, 2021 · 5 years ago
  Contango can indeed have an impact on the performance of bitcoin ETFs. When the market is in contango, it means that the futures price of bitcoin is higher than its current price. This can result in higher costs for the ETF, as it needs to constantly roll over its futures contracts. However, it's important to consider that the performance of bitcoin ETFs is influenced by various factors, including market sentiment, overall market conditions, and the specific investment strategy of the ETF. Contango is just one piece of the puzzle.
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