The ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures exchange-traded fund, has reached a significant milestone, amassing over $2 billion in assets. This achievement marks an all-time high for the fund, reflecting the growing interest and confidence in Bitcoin as a viable investment asset.
BITO’s assets stood at $2,010,057,946 at the market close on January 8. This represents a remarkable growth of 10% in just one week, climbing from $1.8 billion on January 2. Also, within the past month, BITO underwent an 18% surge in assets from $1.7 billion on December 9, 2023.
Simeon Hyman, the Global Investment Strategist at ProShares, has pointed out that the potential introduction of a Bitcoin ETF has been a topic of considerable debate, with many attributing it as a factor contributing to the rise in Bitcoin’s value. Despite facing obstacles including issues with banks related to cryptocurrency in March and increasing interest rates, Bitcoin has maintained a consistent upward trend throughout the year 2023.
BITO Institutional Acceptance Continues to Grow
In December 2023, Cathie Wood’s Ark Invest shed more than $200 million of its Coinbase shares via its ETFs. Despite this, the company made a significant acquisition of BITO worth $92 million towards the end of December, demonstrating their belief in the future expansion of the Bitcoin Strategy ETF.
This move happened amidst widespread market speculation regarding the impending approval of the spot Bitcoin ETF by the U.S. SEC, expected by January 10. With the broader financial markets preparing for the possible approval of the ETF, specialists in the industry are keeping a close watch on the performance of cryptocurrency stocks as the deadline approaches.
BITO was introduced in October 2021, marking its debut as the inaugural fund of this nature in the United States. Given the lack of ETFs with direct Bitcoin holdings, it was believed that products investing in Bitcoin futures would serve as a suitable alternative. Remarkably, the fund amassed $1 billion in assets within days of its market launch.
This achievement by BITO underscores the growing acceptance and adoption of Bitcoin and other cryptocurrencies in the mainstream financial market. It also highlights the potential of Bitcoin futures as a viable investment strategy, paving the way for a new era in the world of finance.