Bitcoin’s Strong Correlation With Sports Betting ETF May Offer Early Trend Signal

Roundhill Investments launched the Sports Betting & iGaming ETF (BETZ) on June 4, 2020, investing in online gambling, sports betting and related technology companies. BETZ and Bitcoin are both driven by liquidity and risk appetite. Their close relationship also supports the view that Bitcoin is a risk-sensitive asset rather than a safe haven.

The latest research found a 0.91 correlation coefficient between BETZ and Bitcoin prices, indicating a near-perfect positive correlation. Historically, BETZ has often peaked or bottomed several weeks before Bitcoin, potentially making it a leading indicator of turning points in the crypto market. The report did not disclose the study period, sampling frequency or amounts involved, and correlation does not imply causation.