Record-Breaking 2021: Largest Bitcoin Futures ETF Tops AUM Highs

• ProShares' Bitcoin Strategy ETF Reaches New Heights
• BITO's Role in the Market
• Daily Trading Volume and Investor Demand
• The Allure of BITO
• Bitcoin Prices and Future Expectations

ProShares' Bitcoin Strategy ETF Reaches New Heights

The ProShares' Bitcoin$42,260 -0.64% Strategy ETF (BITO) - a Bitcoin futures fund available in the U.S - has set a new record with a high of $1.47 billion in assets under management (AUM) this week. This surpasses a previous high set in December of 2021 and signals a revived demand from regulated and accredited institutions for Bitcoin (BTC). This comes at a time when numerous Bitcoin spot ETF applications have been filed in the U.S.

BITO's Role in the Market

BITO, traded on the Chicago Mercantile Exchange (CME), provides investors with an opportunity to profit from Bitcoin-linked returns through a regulated product. Demand has remained high for BITO, as indicated by the recent record-breaking growth in AUM.

Daily Trading Volume and Investor Demand

"BITO's average daily trading volume of $160M since its launch places it among the top 5% of all U.S. ETFs," reported Simeon Hyman, Global Investment Strategist at ProShares. This demonstrates the strong desire for an accessible, regulated and familiar method of targeting Bitcoin returns.

The Allure of BITO

Unlike certain other Bitcoin futures ETFs, BITO mirrors the spot prices of the asset closely. This characteristic has likely contributed to its popularity among traders. In one week in June, over $65 million was invested, marking the greatest inflow in a year and surpassing the prior 2023 high of just over $40 million in April.

Bitcoin Prices and Future Expectations

Over the last few months, Bitcoin prices have seen a boost, with investment behemoths such as BlackRock (BLK) and Fidelity anticipating U.S. regulatory approval to offer Bitcoin spot ETF to their clients. This development is expected to result in increased buying pressure for the asset.

As of Thursday morning, Bitcoin was trading at just over $37,600, representing a decrease of 1.6% over the last 24 hours.

Edited by Jonathan Stoker