Bitcoin Strategy ETF Reaches $2 Billion in Assets
The Bitcoin Strategy ETF (BITO), a bitcoin futures exchange-traded fund, has reached over $2 billion in assets and achieved an all-time high. According to ProShares global investment strategist Simeon Hyman, BITO grew 10% in the last week from $1.8 billion on Jan. 2 and 18% within the last month from $1.7 billion on Dec. 9, 2023.
Hyman noted that while many attribute bitcoin’s price appreciation to speculation about a spot Bitcoin ETF, the cryptocurrency has been rallying throughout 2023 despite challenges such as crypto-related bank issues and rising interest rates.
He also highlighted that obtaining short exposure to cryptocurrencies can be challenging and expensive, but investors can utilize BITI and SETH, futures-based short bitcoin and short ether ETFs respectively, to profit when the prices of these digital assets decline.
New Investments and Trading Volume
In December 2023, Cathie Wood’s Ark Invest sold over $200 million in Coinbase shares through its ETFs and purchased $92 million worth of BITO. As of Jan. 8, the daily volume for BITO stands at $811.13 million.
About the Author
MK Manoylov has been a reporter for The Block since 2020, covering various crypto news topics with a focus on NFTs, metaverse, web3 gaming, funding, crime, hacks, and the crypto ecosystem. MK holds a graduate degree from New York University’s Science, Health and Environmental Reporting Program (SHERP) and has also written for WebMD and Insider. You can follow MK on Twitter @MManoylov and on LinkedIn.
Hot Take: Bitcoin Strategy ETF Surpasses $2 Billion in Assets
The Bitcoin Strategy ETF (BITO) has made headlines by surpassing $2 billion in assets and achieving an all-time high. Despite challenges faced by the crypto industry, including bank issues and rising interest rates, bitcoin has continued to rally throughout 2023. This growth highlights the increased interest in bitcoin and the need for accessible short exposure to cryptocurrencies. Investors can take advantage of futures-based short bitcoin ETFs like BITI to profit from price declines. Additionally, recent investments and trading volume demonstrate a growing market demand for bitcoin futures exchange-traded funds. The success of BITO further solidifies bitcoin’s position as a prominent asset in the financial world.
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