BITO Bitcoin Strategy ETF Assets Surpass $2 Billion Mark
The ProShares Bitcoin Strategy ETF (BITO) has recently seen its assets under management surge to over $2 billion. The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs from major issuers, including BlackRock, Fidelity, and Invesco, and this caused BITO’s assets under management to surge by over $180 million to reach $2.187 billion.
Spot Bitcoin ETF Approval To Benefit Retail and Institutional Investors
11 spot Bitcoin ETFs are now set to trade on exchanges like stocks and enjoy special tax benefits in the United States. Proponents believe that these ETFs will allow institutional and retail US investors to more easily gain exposure to BTC, without having to go through centralized cryptocurrency exchanges and manage their own private keys.
BITO’s Popularity Amid Absence of Direct Bitcoin ETF
BITO was the first Bitcoin futures ETF launched in the United States, and its popularity surged because it allowed investors to gain exposure to Bitcoin in the absence of a direct Bitcoin ETF. Although its assets under management initially soared to surpass $1 billion, it plunged to around $500 million amid the collapse of FTX in November 2022.
MicroStrategy Continues Accumulating Bitcoin
MicroStrategy, the largest corporate holder of Bitcoin, kept accumulating the cryptocurrency and currently holds 189,150 BTC, which is worth around $8.87 billion. The firm first started accumulating Bitcoin back in August 2020 when the cryptocurrency was trading just above the $10,000 mark. It currently has an average investment cost per BTC of around $31,165.
MicroStrategy’s Recent Bitcoin Purchase
MicroStrategy recently added an additional 14,620 BTC to its stash for around $615.7 million, at an average price of $42,110 per coin, to hold around 0.9% of the flagship cryptocurrency’s total supply. During the last year, the company has an unrealized gains of about $500 million.
Hot Take
The ProShares Bitcoin Strategy ETF (BITO) has surpassed the $2 billion mark in assets under management ahead of the approval of spot Bitcoin ETFs. MicroStrategy’s continued accumulation of Bitcoin suggests a bullish sentiment around the cryptocurrency.
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