ProShares BITO experiences inflows of $26 million as hope for the approval of a spot Bitcoin ETF grows.
- With $26 million in inflows, ProShares Bitcoin Strategy ETF (BITO) reaches $1 billion AUM, spurred by hope for spot Bitcoin ETF approval.
- Investment in digital asset products increased to $33.4 billion AUM in June, attracting money, with Grayscale Bitcoin Trust (GBTC) dominating trading volumes.
The assets under management (AUM) of the ProShares-Bitcoin Strategy ETF, also known by the ticker BITO, have increased and now exceed $1 billion. Due to renewed investor confidence around the anticipated approval of a spot Bitcoin exchange-traded fund (ETF), large inflows of over $26 million over the last week were the primary factor driving this increase in AUM. Digital asset investment products continue to draw capital despite the current market difficulties, with AUM in this industry reaching $33.4 billion in June.
How The Recent ETF Filing was Initially Rejected
The recent filings for bitcoin exchange-traded funds (ETFs) by BlackRock and Fidelity were deemed inadequate by the U.S. Securities and Exchange Commission (SEC), resulting in a decline in the price of bitcoin. The SEC stated that the filings lacked clarity and comprehensive information, specifically regarding the surveillance-sharing agreement with the spot bitcoin exchange. The SEC has emphasized the need for ETFs to demonstrate robust structures to prevent fraud and manipulation. As a result of the uncertainty surrounding bitcoin ETFs, altcoins experienced a surge as investors speculated on alternative crypto assets.
Renewed Optimism for Spot Bitcoin ETF
The ProShares BITO fund experienced significant inflows in recent weeks, increasing its AUM above $1.04 billion. ETF.com data shows that the fund received $14.9 million in inflows on June 29 and another $11.9 million on July 3. Since BlackRock submitted a request for a spot Bitcoin ETF, investor interest in BITO has considerably increased. More than $200 million has been added to the fund’s AUM since the filing.
Comparing Bull Market Interest
The recent increase in capital inflows for Bitcoin investment products is a great development, but it’s crucial to remember that this level of capital inflow is still quite low compared to the fervor seen during the bull market. The ProShares BITO fund, despite this, managed to surpass the $1 billion AUM milestone just two days after its debut in October 2021, making it the fastest ETF in history to do so.
Continued Inflows in Digital Asset Investment Products
Digital asset investing products continue to draw weekly inflows despite a cooling market. AUM across digital asset investment products increased by 69.5% year-to-date, according to research by CCData, reaching $33.4 billion in June. This shows that despite the market difficulties, there is still interest in digital assets.
Dominance of Grayscale Bitcoin Trust (GBTC)
The Grayscale Bitcoin Trust (GBTC) accounted for 74% of the trading volume of all trust products in the market, according to the Digital Asset Management Review by CCData. The increase in GBTC’s trading volumes and market share is consistent with the rising popularity of Bitcoin as a base asset. Investors have demonstrated their trust in GBTC as a means of getting exposure to Bitcoin’s performance without actually owning the cryptocurrency.
Conclusion
Assets under management for the ProShares Bitcoin Strategy ETF have increased significantly during the previous week, topping $1 billion. Investor interest has been significantly boosted by the optimism surrounding the likely approval of a spot Bitcoin ETF. Digital asset investment products still experience weekly capital inflows, even though the present levels are not as high as they were during the bull market, indicating that there is still a strong interest in this industry. Growing faith in Bitcoin as an underlying asset is further evidenced by the Grayscale Bitcoin Trust’s dominance in trading volumes. The interest in and investment in Bitcoin and other digital assets are anticipated to increase as the market changes and regulatory frameworks expand, resulting in more developments in the cryptocurrency investment environment.
