Bitcoin Futures ETF BITO Soars: A Deep Dive into the Escalating Demand

• ProShares' Bitcoin Strategy ETF Surges to New Highs
• About BITO
• Grayscale Bitcoin Trust Set for Update
• Proposed Modifications
• ARK Invest's Recent Moves
• Details of the Transactions

ProShares' Bitcoin Strategy ETF Surges to New Highs

The ProShares' Bitcoin$42,260 -0.64% Strategy ETF (BITO), an offering of bitcoin futures in the U.S., recorded a high of $1.47 billion in assets under management this week. This figure surpasses the previous record set in December 2021, suggesting a rekindled institutional demand for bitcoin (BTC). The flood of applications for bitcoin spot exchange-traded fund (ETF) in the U.S. is a potential catalyst for this momentum.

About BITO

BITO is listed on the Chicago Mercantile Exchange (CME) and provides investors with an avenue for gaining exposure to bitcoin-linked returns through a regulated product. The continual investor demand for BITO, exhibited by the ETF achieving a new peak in assets under management, is an indicator of the desire for a regulated, accessible and familiar means of capitalizing on bitcoin returns," stated Simeon Hyman, the global investment strategist at ProShares.

Grayscale Bitcoin Trust Set for Update

Grayscale, the manager of the Grayscale Bitcoin Trust (GBTC), is set to update the trust's agreement for the first time since 2018. This move aims to refine GBTC's structure in preparation for an anticipated shift to a spot bitcoin ETF. This strategic update also aims to level the playing field with other applicants, such as asset-management giant BlackRock.

Proposed Modifications

The proposed update will go to a shareholder vote and entails two modifications to the trust agreement. The first modification pertains to fees, which will now be payable daily rather than monthly as was previously the case. This modification is an operational tweak and not part of a fee reduction - a commitment that Grayscale has made, but which is yet to be finalized.

ARK Invest's Recent Moves

Cathie Wood's investment management firm, ARK Invest, recently sold a further $5 million worth of Coinbase (COIN) stock. Simultaneously, the firm purchased $2 million of shares in trading platform Robinhood (HOOD) and $1.5 million of online bank SoFi Technologies (SOFI).

Details of the Transactions

The sale of 38,668 COIN shares from the Ark Fintech Innovation ETF (ARKF) follows the offload of 43,956 shares earlier in the week. Meanwhile, the purchase of HOOD aligns with Robinhood's recent commencement of stock trading in the U.K., marking its third attempt at international expansion. ARK has invested approximately $13.5 million in Robinhood this month, based on closing prices.

Edited by Jonathan Stoker