ProShares Global Investment Strategist: Flaws Still Exist in the Bitcoin Spot Market

ProShares Global Investment Strategist Simeon Hyman said on Bloomberg TV on Wednesday that flaws still exist in the Bitcoin spot market, including price differences between exchanges and platform risks. Bitcoin has multiple prices, and cryptocurrency futures settle daily based on a combination of various prices. Hyman also expressed doubts about how cash creation and redemption work in practice, where brokers exchange cash (rather than underlying securities) with issuers during this process, then the issuer assumes responsibility for buying and selling bitcoin. ETFs typically use an in-kind mechanism where brokers deliver the asset itself to the issuer and receive ETF shares as a return. When talking about the Bitcoin futures market, Hyman stated that it is a mature place with strong liquidity and regulation.