ProShares Bitcoin Strategy ETF Approaches $2 Billion AUM
The ProShares Bitcoin Strategy ETF (BITO) has seen a surge in its assets under management, reaching nearly $2 billion on January 8th, marking an all-time high. The fund’s trading volume also surpassed $800 million on the same day.
A History-Making Bitcoin Futures ETF
Launched in October 2021, BITO made history as the first-ever Bitcoin futures exchange-traded fund (ETF) in the United States. The absence of spot Bitcoin ETFs led to increased popularity in products investing in BTC futures. Shortly after its launch, BITO quickly reached $1 billion in assets, highlighting strong demand for crypto-related investment options.
A Setback and a Rebound
In November 2022, the fund faced a setback when its asset base shrank to around $500 million due to the collapse of the FTX crypto exchange. However, recent months have witnessed a remarkable rebound for BITO, fueled by substantial inflows during a Bitcoin rally.
Optimism for Spot Bitcoin ETF Approval
The milestone of approaching $2 billion AUM comes amid growing anticipation for approval of spot Bitcoin ETFs in the US. This optimism has contributed to renewed interest in BTC-related investment instruments.
ARK Invest Acquires BITO Shares
Last month, Cathie Wood’s ARK Invest sold millions of dollars’ worth of GBTC shares and Coinbase stocks. They utilized a portion of the proceeds, $100 million, to acquire Bitcoin Futures ETF BITO. As a result, ARK became the second-largest holder of BITO.
Hot Take: ProShares Bitcoin Strategy ETF Hits All-Time High
The ProShares Bitcoin Strategy ETF has reached a significant milestone, approaching $2 billion in assets under management. This achievement reflects the growing demand for crypto-related investment vehicles and the anticipation of spot Bitcoin ETF approval in the US. Despite a setback in 2022, the fund has experienced a strong rebound, driven by substantial inflows during a Bitcoin rally. The acquisition of BITO shares by ARK Invest further highlights the appeal of this ETF. As the crypto market continues to evolve, the success of BITO underscores the increasing acceptance and adoption of digital assets.
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