Bitcoin spot market is still a little ‘weird,’ ProShares strategist says

The Bitcoin spot market still has deficiencies, including price discrepancy across exchanges and platform risks, according to Simeon Hyman, a global investment strategist at ProShares. On Bloomberg TV on Wednesday, Hyman said there are multiple prices for Bitcoin, while futures in the cryptocurrency rely on a combination of prices for settlement everyday. Hyman also cast doubt on how cash creation and redemptions will function in practice.

In that process, broker-dealers exchange cash — as opposed to the underlying security — with the issuer, who then shoulders the responsibility of buying and selling Bitcoin. ETFs typically employ the in-kind mechanism, in which broker-dealers deliver the asset itself to issuers and receive shares of the ETF in return.