Fast execution, robust charts, clean risk controls.
👉 Open account →
COINOTAG recommends • Exchange signup
🚀 Smooth orders, clear control
Advanced order types and market depth in one view.
👉 Create account →
COINOTAG recommends • Exchange signup
📈 Clarity in volatile markets
Plan entries & exits, manage positions with discipline.
👉 Sign up →
COINOTAG recommends • Exchange signup
⚡ Speed, depth, reliability
Execute confidently when timing matters.
👉 Open account →
COINOTAG recommends • Exchange signup
🧭 A focused workflow for traders
Alerts, watchlists, and a repeatable process.
👉 Get started →
COINOTAG recommends • Exchange signup
✅ Data‑driven decisions
Focus on process—not noise.
👉 Sign up →
ProShares Bitcoin Strategy ETF (BITO) experiences a significant decline in trading volume following the launch of spot ETFs.
Spot ETFs have amassed over $1.2 billion in investor money, overshadowing BITO’s market presence.
Experts suggest BITO will remain vital as a hedging tool despite the shift in investor preference.
This article examines the substantial decrease in trading volume of ProShares Bitcoin ETF and the rising popularity of spot ETFs in the cryptocurrency market, emphasizing BITO’s ongoing role as a hedging instrument.
Declining Dominance of ProShares Bitcoin ETF
The trading landscape for Bitcoin ETFs is undergoing a significant transformation. The ProShares Bitcoin Strategy ETF, a leading futures-based ETF, has witnessed a drastic 75% drop in trading volume since the introduction of Bitcoin spot ETFs in the U.S. on January 11. Despite achieving a record $2 billion in trades on launch day, BITO’s market influence has since diminished, with over $270 million in net outflows, as reported by ETF.com.
BITO Flows Chart
Rise of Spot ETFs in the Bitcoin Market
Contrasting BITO’s decline, the newly launched Bitcoin spot ETFs have seen a surge in popularity. In their first week alone, these ETFs registered a cumulative trading volume of $14 billion and attracted over $1.2 billion in investments. Spot ETFs, which invest directly in Bitcoin, are increasingly favored by investors due to their simplicity and lower associated costs compared to futures-based ETFs like BITO.
BITO’s Role as a Hedging Instrument
Despite the shift towards spot ETFs, industry observers maintain that futures-based ETFs like BITO will continue to play a crucial role in the market, particularly as a hedging tool for authorized participants (APs). These participants, who are instrumental in ETF creation and redemption, often resort to regulated products like BITO to manage the risks associated with Bitcoin price fluctuations during the ETF share creation process.
COINOTAG recommends • Professional traders group
💎 Join a professional trading community
Work with senior traders, research‑backed setups, and risk‑first frameworks.
👉 Join the group →
COINOTAG recommends • Professional traders group
📊 Transparent performance, real process
Spot strategies with documented months of triple‑digit runs during strong trends; futures plans use defined R:R and sizing.
👉 Get access →
COINOTAG recommends • Professional traders group
🧭 Research → Plan → Execute
Daily levels, watchlists, and post‑trade reviews to build consistency.
👉 Join now →
COINOTAG recommends • Professional traders group
🛡️ Risk comes first
Sizing methods, invalidation rules, and R‑multiples baked into every plan.
👉 Start today →
COINOTAG recommends • Professional traders group
🧠 Learn the “why” behind each trade
Live breakdowns, playbooks, and framework‑first education.
👉 Join the group →
COINOTAG recommends • Professional traders group
🚀 Insider • APEX • INNER CIRCLE
Choose the depth you need—tools, coaching, and member rooms.
👉 Explore tiers →
Understanding ETF Creation and Hedging Strategies
The process of creating ETF shares can be done either through in-kind or cash creation. In both scenarios, APs face the risk of Bitcoin price volatility. To mitigate this, they frequently use regulated hedging methods, such as BITO or CME futures. Laurent Kssis, a crypto trading adviser, explains that APs often choose BITO as a hedging solution, especially if they lack the infrastructure to execute CME Bitcoin futures or handle Bitcoin directly.
The Future of Bitcoin ETFs
David Duong, head of institutional research at Coinbase, asserts that despite the recent downturn in BITO’s trading volume, it remains an essential component of the Bitcoin ETF ecosystem. This is primarily due to the reliance of some APs on regulated hedging mechanisms like BITO or CME futures, particularly when creating or redeeming ETF shares.
COINOTAG recommends • Exchange signup
📈 Clear interface, precise orders
Sharp entries & exits with actionable alerts.
👉 Create free account →
COINOTAG recommends • Exchange signup
🧠 Smarter tools. Better decisions.
Depth analytics and risk features in one view.
👉 Sign up →
COINOTAG recommends • Exchange signup
🎯 Take control of entries & exits
Set alerts, define stops, execute consistently.
👉 Open account →
COINOTAG recommends • Exchange signup
🛠️ From idea to execution
Turn setups into plans with practical order types.
👉 Join now →
COINOTAG recommends • Exchange signup
📋 Trade your plan
Watchlists and routing that support focus.
👉 Get started →
COINOTAG recommends • Exchange signup
📊 Precision without the noise
Data‑first workflows for active traders.
👉 Sign up →
Conclusion
In conclusion, the cryptocurrency ETF market is witnessing a paradigm shift with the rise of spot ETFs, leading to a decline in the trading volume of futures-based ETFs like BITO. However, BITO’s role as a vital hedging instrument in the ETF creation and redemption process ensures its continued relevance in the evolving landscape of Bitcoin investment products.
