ProShares, a leading provider of exchange-traded funds (ETFs), has recently witnessed significant inflows into its Bitcoin Strategy ETF (BITO). Interestingly, BITO, experienced the highest weekly inflow over a year, indicating a growing interest in cryptocurrencies among investors.
The Bitcoin Futures ETF $BITO had its biggest weekly inflow in a year as assets top $1b again. It also traded half a billion in shares on Friday, which it's only done about 5 times before via @SirYappityyapp pic.twitter.com/Xrq0lUaaTO
— Eric Balchunas (@EricBalchunas) June 25, 2023
Per the release, the fund attracted an impressive $65 million in new investments, breaking its previous high of just over $40 million back in April 2023. Undoubtedly, the surge in demand for BITO can be attributed to the increasing adoption of cryptocurrencies and blockchain technology.
On a broader scale, data from digital asset manager Coinshares shows that weekly inflows of crypto-based investment products were at the highest since July 2022. According to the data, total inflows across crypto-based investment products hit $199 million with Bitcoin (BTC) topping the chart with inflows of $187 million.
BTC, the world’s largest cryptocurrency by market capitalization, continues to gain widespread acceptance as more individuals and institutions recognize its potential as an alternative store of value.
Meanwhile, BITO is designed to track the performance of BTC futures contracts listed on the Chicago Mercantile Exchange (CME), providing investors with exposure to BTC without needing to hold the underlying asset.
This makes it an attractive investment option for those who are interested in Bitcoin but want to avoid the volatility associated with holding cryptocurrencies directly.
Institutional Investors Renew Interest in Bitcoin ETF
However, the recent influx of funds into BITO is a testament to the growing popularity of cryptocurrencies as a legitimate investment asset class. As more investors turn to digital assets to diversify their portfolios and hedge against inflation, we may see continued growth in the demand for cryptocurrency-related investments such as BITO.
In recent months, several high-profile companies and financial institutions have announced plans to invest in or offer Bitcoin-related products and services. Hence, the increased institutional interest is seen by many as a sign that BTC is becoming more mainstream and that its long-term prospects are bright.
Recall that BlackRock, the world’s largest asset manager has filed with the Securities and Exchange Commission (SEC) to launch a Bitcoin Spot ETF.
Unlike other firms that have attempted to launch similar products in the past, BlackRock’s entry into the Bitcoin Spot ETF space brings significant weight and influence. Also, the product could potentially revolutionize the accessibility and adoption of BTC among investors.