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ProShares' Bitcoin Futures ETF Racks Up Biggest Weekly Inflow in a Year
Investors poured in $65 million to BITO in the past week, the data shows, breaking its previous 2023 high of just over $40 million in April.
Updated Jun 26, 2023, 7:00 p.m. Published Jun 26, 2023, 7:55 a.m.
A flurry of Bitcoin ETF filings in the U.S. has almost instantly spurred interest in the asset from institutional investment circles.
ProShares’ Bitcoin Strategy ETF (BITO) – a Bitcoin futures fund offered in the U.S. – last week recorded the highest weekly inflow in over a year as bitcoin (BTC) prices breached the $30,000 level, data cited by Bloomberg senior ETF analyst Eric Balchunas shows.
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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
BITO allows investors to gain exposure to bitcoin-linked returns with a regulated product and holds over $1 billion worth of CME Bitcoin Futures, holdings data shows.
Investors poured in $65 million to BITO in the past week, the data shows, breaking a previous 2023 high of just over $40 million in April. As such, the product did not see meaningful inflows in May and most of June as demand for bitcoin lulled.
BITO has closely tracked spot bitcoin prices which has likely added to its allure among traders. “It pretty much has tracked bitcoin perfectly. It lagged spot by 1.05% (annually), but its fee is 0.95%,” Balchunas tweeted.
The BITO buying pressure likely indicates interest in bitcoin exposure among institutional investors closely on the back of a bitcoin ETF frenzy in the U.S.
Bitcoin prices rallied in the past two weeks as investment giant BlackRock (BLK) filed for a spot bitcoin ETF in the U.S.
The world's largest cryptocurrency by market capitalization touched $31,000 over the weekend to extend monthly gains to 14%, as per CoinGecko data.
The U.S. Securities and Exchange Commission (SEC) has consistently blocked spot products from launching, but BlackRock’s stature and history of ETF approvals have spurred a bullish outlook for bitcoin among some traders.
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When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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