The ProShares Bitcoin Strategy exchange-traded fund (ETF) is on runway to reach a limit on the number of futures contracts information technology's immune after quickly condign a little too popular.

After just a couple of days of trading, the ProShares ETF has reached one,900 contracts sold for Oct and there is a ii,000 front-month limit imposed past the Chicago Mercantile Substitution.

At that place are already 1,400 contracts for November and in that location is an overall maximum limit of 5,000 open contracts according to Bloomberg. Ane solution could be to offer longer contracts, merely that would carry the danger of as well much distancing from Bitcoin (BTC) prices.

President of the advisory firm the ETF Store Nate Geraci commented that the fund could start to diverge from market prices, adding:

"The ETF is forced to obtain Bitcoin price exposure at college and higher prices as it goes further out on the futures curve."

The launch of competing products such equally the Valkyrie Bitcoin Strategy ETF, which will commence trading today, and the VanEck ETF, which is expected to trade on Monday, Oct. 25, may dilute the demand for the ProShares fund.

Equally reported by Cointelegraph, the ProShares ETF became the beginning-ever fund to hit $1 billion in assets under direction in simply 2 days. Information technology vanquish an 18-twelvemonth-erstwhile record previously held by a gold-based fund that did it in three.

Bloomberg senior ETF annotator, Eric Balchunas, said that the momentum volition still be hard to stop at this point.

"The unprecedented early book in BITO makes it like a snowball rolling downhill, equally liquidity and assets begets more liquidity and assets."

Related: VanEck Bitcoin Strategy ETF will likely launch next calendar week as crypto prices reach ATHs

Balchunas too thinks that the success of Bitcoin futures products may speed up the approval of a spot-based Bitcoin ETF.

"Both the success, general performance of ETFs and the clear result of potential capacity of futures may become the SEC to reconsider or work out a path for spot."

As reported by Cointelegraph on Midweek, Grayscale has already anticipated this and is preparing to catechumen its popular Bitcoin Trust into a physically-backed product based on spot markets.