The frenzy surrounding Bitcoin ETFs continues.
The enthusiasm surrounding Bitcoin exchange-traded funds (ETFs) is reigniting, indicated by a flurry of new filings and an uptick in institutional investors’ capital input.
As a manifestation of this renewed interest, the ProShares Bitcoin Strategy ETF (BITO), an established Bitcoin futures fund, has experienced an unprecedented inflow surge.
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Observations from Bloomberg's senior ETF analyst, Eric Balchunas, on June 26th revealed a significant capital injection into the fund, the highest weekly inflow over the past year, amounting to $65.3 million. This extraordinary inflow helped propel BITO's total assets beyond the $1 billion mark.
Having the distinction of being the first BTC-tied ETF in the United States, BITO continues to be a preferred choice for institutional investors.
Balchunas underscored the accuracy of BITO's tracking of Bitcoin. He noted a slight lag of 1.05% annually, despite a 0.95% fee. The fund has achieved a 59.6% gain since the beginning of 2023, as per ProShares.
Interest in Bitcoin derivatives has escalated since BlackRock, the world's largest asset manager, filed for its Bitcoin ETF on June 15th.
According to the crypto options exchange Deribit, Bitcoin futures' open interest (OI) - which quantifies the total count of unsettled futures contracts - has experienced a 30% boost over the past week. As of June 25th, OI's value is $319 million.
While the SEC’s stance on a Bitcoin spot ETF remains ambiguous, BlackRock’s filing seems to have sparked a new wave of applications. WisdomTree has lodged its third application for a Bitcoin spot ETF, while Invesco resubmitted its application for a similar offering soon after.
The amplified buzz and renewed enthusiasm for Bitcoin ETFs reflect the evolution and growing crypto acceptance in the investment world. It is worth noting that, after several Bitcoin ETF applications, the price of crypto recorded significant growth.
In the last 7 days, Bitcoin's (BTC) price increased by almost 15% and currently retails for $30,398.31.
