Rapid Increase in Money Flow to ProShares’ Bitcoin Strategy ETF

• According to the data, ProShares’ BITO fund saw an additional $14.9 million inflow on June 29 and an additional $11.9 million inflow on July 3.
• The fund’s assets were at $822 million on June 15 (the day BlackRock’s ETF application was filed).
• As stated by European asset manager CoinShares, the excitement about the launch of a spot Bitcoin ETF benefited the cryptocurrency fund industry.

The flow of money into the Bitcoin Strategy ETF traded under the BITO ticker symbol, initiated by ProShares, rapidly increased with BlackRock’s move.

Interest in ProShares’ BITO is Growing

The cryptocurrency market rally, which started with BlackRock’s surprise spot Bitcoin exchange-traded fund (ETF) application, brought in tens of millions of dollars in new inflows to a futures-based fund managed by ProShares.

According to the data, ProShares’ BITO fund saw an additional $14.9 million inflow on June 29 and an additional $11.9 million inflow on July 3, bringing its total assets under management to $1.04 billion. By comparison, the fund’s assets were at $822 million on June 15 (the day BlackRock’s ETF application was filed).

ProShares’ futures-based fund was launched in late 2021. There are several issuers competing to launch a spot Bitcoin ETF, which could bring more legitimacy to both Bitcoin and the underlying market structure. The U.S. Securities and Exchange Commission (SEC) had previously rejected such a product due to insufficient oversight among spot trading platforms.

ETF Applications Benefited the Funds

As stated by European asset manager CoinShares, the excitement about the launch of a spot Bitcoin ETF benefited the cryptocurrency fund industry. According to CoinShares’ data, weekly inflows into cryptocurrency asset management products were strong for the second consecutive week, with $125 million flowing into the sector last week. This indicates, according to the European asset manager, that a total of $334 million has been invested in such products in the past two weeks.

While the SEC has not yet approved a spot Bitcoin ETF, the persistence of companies in renewing their applications indicates that they will meet the necessary requirements to obtain approval.