Surprising Correlation Found between Sports Betting ETF and Bitcoin

The Roundhill Sports Betting & iGaming ETF (BETZ) and Bitcoin have shown an unexpected level of correlation, with data indicating that the two assets are nearly joined at the hip. According to CoinDesk's analysis using the iShares Bitcoin Trust ETF (IBIT) as a benchmark, the 90-day correlation coefficient between BETZ and IBIT was 0.73 at press time, while the 365-day coefficient stood at 0.91.

This high level of linkage suggests that the sports betting ETF could be a potential harbinger of Bitcoin price action. Research indicates that when BETZ notches its highs or lows, it often precedes similar movements in the cryptocurrency. This relationship may challenge the notion that Bitcoin is a safe-haven asset, as some market observers have suggested.

The Roundhill Sports Betting & iGaming ETF has delivered annualized performance of 3.67% since inception and has $47.9 million in assets under management. The fund's portfolio includes 30 stocks, with Rush Street Interactive being its largest holding at 8.05%. Other notable holdings include DraftKings and FanDuel owner Flutter Entertainment.