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The first and largest bitcoin futures ETF is the biggest it\u2019s ever been.\u00a0<\/p>\n
The ProShares Bitcoin Strategy ETF (BITO) reached $1.47 billion assets under management on Tuesday \u2014 its highest mark ever.<\/p>\n
BITO had quickly grown above $1 billion in assets<\/a> after launching in October 2021, reaching as high as $1.42 billion in assets the following month, according to YCharts.com.\u00a0<\/p>\n But the fund\u2019s assets had sunk to as low as about $500 million in November 2022 amid the collapse of crypto exchange FTX<\/a> \u2014 an event that spurred bitcoin price declines.\u00a0<\/p>\n Its assets under management stood at $850 million as recently as Oct. 12, the YCharts data shows<\/a>. The fund has seen net inflows of $202 million since that date, according to ETF.com.\u00a0<\/p>\n Other crypto investment products have seen inflows of late. These products brought in roughly $350 million last week, according<\/a> to CoinShares \u2014 the ninth consecutive week of positive flows.\u00a0<\/p>\n Market appreciation has also contributed to BITO\u2019s asset rise. Bitcoin\u2019s (BTC<\/a>) price was about $37,750 at 11:30 am ET on Wednesday \u2014 up about 130% from a year ago, and roughly 9% in the last 30 days.<\/p>\n Read more:<\/strong> Bitcoin flirts with breakout, price mirrors lead-up to 2012 halving<\/a><\/p>\n ProShares<\/a> investment strategist Simeon Hyman said in a statement that BITO\u2019s asset peak \u201cspeaks to the demand for a familiar, accessible and regulated way to target the returns of bitcoin.\u201d<\/p>\n BITO\u2019s<\/a> average daily trading volume of $160 million puts it in the top 5% of all US ETFs<\/a>, Hyman added.\u00a0<\/p>\n But the fund could soon have more competition, as many industry watchers expect the US Securities and Exchange Commission to soon approve ETFs that would hold bitcoin directly \u2014 marking a first for the regulator.\u00a0<\/p>\n The SEC\u2019s deadline to rule on such a proposal<\/a> by Ark Invest and 21Shares is Jan. 10, at which time various segment observers believe the SEC could also greenlight spot bitcoin ETFs from BlackRock, Fidelity, Invesco and others.\u00a0<\/p>\n Read more: <\/strong>Bitcoin ETF saga reaches \u2018pattern break\u2019 as amendments pile up<\/a><\/p>\n Bloomberg Intelligence analyst Eric Balchunas said during a Nov. 20 segment on Bloomberg TV that BITO\u2019s increase in assets is a bit ironic considering its potential fate.\u00a0<\/p>\n \u201cThis is the ETF that\u2019s probably going to be sort of under pressure, or seeing some exodus, once the spot ETFs come out, because people prefer those,\u201d he said. \u201cBut until then, it\u2019s being used in anticipation of those ETFs.\u201d\u00a0<\/p>\n 21Shares president Ophelia Snyder said during a Bloomberg TV interview last week that while she believes spot bitcoin ETFs have \u201cbroader appeal,\u201d she doesn\u2019t expect them to make futures-based products obsolete.\u00a0<\/p>\n Ark Invest and 21Shares 21Shares and Ark Invest launched crypto futures ETFs<\/a> earlier this month.<\/p>\n \u201cI think there\u2019s still a role for futures products to play in this market,\u201d Snyder said. \u201cI think that is a smaller role than what spot will play.\u201d<\/p>\n
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