The ProShares Bitcoin Strategy ETF is on track to reach a limit on the number of futures contracts it’s allowed after quickly becoming a little too popular.
After just a couple of days of trading, the ProShares ETF has reached 1,900 contracts sold for October and there is 2,000 front-month limit imposed by the Chicago Mercantile Exchange.
There are already 1,400 contracts for November and there is an overall maximum limit of 5,000 open contracts according to Bloomberg. One solution could be to offer longer contracts, but that would carry the danger of too much distancing from 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 higher and higher prices as it goes further out on the futures curve.”
The launch of competing products such as 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.
As reported by Cointelegraph, the ProShares ETF became the first-ever fund to hit $1 billion in assets under management in just two days. It beat an 18-year-old record previously held by a gold-based fund that did it in three.
Bloomberg senior ETF analyst, Eric Balchunas, said that the momentum will still be hard to stop at this point.
“The unprecedented early volume in BITO makes it like a snowball rolling downhill, as liquidity and assets begets more liquidity and assets.”
Related:VanEck Bitcoin Strategy ETF will likely launch next week as crypto prices reach ATHs
Balchunas also thinks that the success of Bitcoin futures products may speed up the approval of a spot-based Bitcoin ETF.
“Both the success, general functioning of ETFs and the clear issue of potential capacity of futures may get the SEC to reconsider or work out a path for spot.”
As reported by Cointelegraph on Oct. 18, Grayscale has already anticipated this and is preparing to convert its popular Bitcoin Trust into a physically-backed product based on spot markets.
The Miami Hurricanes came into Saturday’s game against Appalachian State with the hopes of reshaping their image after Alabama sledgehammered them, 44-13, in the season-opener. Those hopes were dashed by an unlikely source of attention: a cat.
Midway through the game in Hard Rock Stadium, a cat found itself dangling from the upper deck to the fans’ dismay. The cat held onto the railing with two paws at first, eventually lost its grip on one then fell to the lower deck.
Thankfully, a fan caught the cat and saved its life. The cats’ savior then held the animal up to the crowd in Lion King-esque fashion and earned as loud a round of applause and cheers as those after a Canes touchdown.
Here’s another view, this one showing a fan trying to grab the cat before it fell off the railing and a litany of “Oh my Gods” from the audience.
Cats have taken center stage in numerous sporting events this year. In August, a cat stormed Yankees Stadium and proceeded to earn M-V-P chants. Another cat raced onto the grass in Coors Field in April to hang out with the Los Angeles Dodgers slugger Cody Bellinger.
The Hurricanes were able to get a close win over Appalachian State, but it’s hard to imagine a win over a Sun Belt team pulling more eyeballs than the Hard Rock Cat. Maybe the Canes will be “back” next week.
These AIM images span June 6-June 18, 2021, when the Northern Hemisphere noctilucent cloud season was well underway. The colors — from dark blue to light blue and bright white — indicate the clouds’ albedo, which refers to the amount of light that a surface reflects compared to the total sunlight that falls upon it. Things that have a high albedo are bright and reflect a lot of light. Things that don’t reflect much light have a low albedo, and they are dark. Credit: NASA/HU/VT/CU-LASP/AIM/Joy Ng
Since the mesosphere is much thinner than the part of the atmosphere we live in, the impacts of increasing greenhouse gases, such as carbon dioxide, differ from the warming we experience at the surface. One researcher compared where we live, the troposphere, to a thick quilt.
“Down near Earth’s surface, the atmosphere is thick,” said James Russell, a study co-author and atmospheric scientist at Hampton University in Virginia. “Carbon dioxide traps heat just like a quilt traps your body heat and keeps you warm.” In the lower atmosphere, there are plenty of molecules in close proximity, and they easily trap and transfer Earth’s heat between each other, maintaining that quilt-like warmth.
That means little of Earth’s heat makes it to the higher, thinner mesosphere. There, molecules are few and far between. Since carbon dioxide also efficiently emits heat, any heat captured by carbon dioxide sooner escapes to space than it finds another molecule to absorb it. As a result, an increase in greenhouses gases like carbon dioxide means more heat is lost to space — and the upper atmosphere cools. When air cools, it contracts, the same way a balloon shrinks if you put it in the freezer.
This cooling and contracting didn’t come as a surprise. For years, “models have been showing this effect,” said Brentha Thurairajah, a Virginia Tech atmospheric scientist who contributed to the study. “It would have been weirder if our analysis of the data didn’t show this.”
While previous studies have observed this cooling, none have used a data record of this length or shown the upper atmosphere contracting. The researchers say these new results boost their confidence in our ability to model the upper atmosphere’s complicated changes.
The team analyzed how temperature and pressure changed over 29 years, using all three data sets, which covered the summer skies of the North and South Poles. They examined the stretch of sky 30 to 60 miles above the surface. At most altitudes, the mesosphere cooled as carbon dioxide increased. That effect meant the height of any given atmospheric pressure fell as the air cooled. In other words, the mesosphere was contracting.
Earth’s Middle Atmosphere
Though what happens in the mesosphere does not directly impact humans, the region is an important one. The upper boundary of the mesosphere, about 50 miles above Earth, is where the coolest atmospheric temperatures are found. It’s also where the neutral atmosphere begins transitioning to the tenuous, electrically charged gases of the ionosphere.
Even higher up, 150 miles above the surface, atmospheric gases cause satellite drag, the friction that tugs satellites out of orbit. Satellite drag also helps clear space junk. When the mesosphere contracts, the rest of the upper atmosphere above sinks with it. As the atmosphere contracts, satellite drag may wane — interfering less with operating satellites, but also leaving more space junk in low-Earth orbit.
This infographic outlines the layers of Earth’s atmosphere. Click to explore in full size. Credit: NASA
The mesosphere is also known for its brilliant blue ice clouds. They’re called noctilucent or polar mesospheric clouds, so named because they live in the mesosphere and tend to huddle around the North and South Poles. The clouds form in summer, when the mesosphere has all three ingredients to produce the clouds: water vapor, very cold temperatures, and dust from meteors that burn up in this part of the atmosphere. Noctilucent clouds were spotted over northern Canada on May 20, kicking off the start of the Northern Hemisphere’s noctilucent cloud season.
Because the clouds are sensitive to temperature and water vapor, they’re a useful signal of change in the mesosphere. “We understand the physics of these clouds,” Bailey said. In recent decades, the clouds have drawn scientists’ attention because they’re behaving oddly. They’re getting brighter, drifting farther from the poles, and appearing earlier than usual. And, there seem to be more of them than in years past.
“The only way you would expect them to change this way is if the temperature is getting colder and water vapor is increasing,” Russell said. Colder temperatures and abundant water vapor are both linked with climate change in the upper atmosphere.
Currently, Russell serves as principal investigator for AIM, short for Aeronomy of Ice in the Mesosphere, the newest satellite of the three that contributed data to the study. Russell has served as a leader on all three NASA missions: AIM, the instrument SABER on TIMED (Thermosphere, Ionosphere, Mesosphere Energetics and Dynamics), and the instrument HALOE on the since-retired UARS (Upper Atmospherics Research Satellite).
TIMED and AIM launched in 2001 and 2007, respectively, and both are still operating. The UARS mission ran from 1991 to 2005. “I always had in my mind that we would be able to put them together in a long-term change study,” Russell said. The study, he said, demonstrates the importance of long-term, space-based observations across the globe.
In the future, the researchers expect more striking displays of noctilucent clouds that stray farther from the poles. Because this analysis focused on the poles at summertime, Bailey said he plans to examine these effects over longer periods of time and — following the clouds — study a wider stretch of the atmosphere.
