This week, the ProShares Bitcoin Futures ETF (BITO) is gearing up to potentially achieve historic volume records as recent inflows gain momentum.
Bloomberg ETF analyst Eric Balchunas notes the outstanding performance of BITO, highlighting a notable doubling in the ETF’s assets in the past 30 days, driven primarily by wmarket appreciation.
Impressive Growth in Bitcoin ETF
In the last month, the assets of the ProShares Bitcoin Futures ETF have nearly doubled in value, with approximately $240 million attributed to inflows. Balchunas identifies this as the second-best month for the ETF, projecting that it may break its volume record this week with around $2 billion in assets traded.
A significant portion of this surge is attributed to industry-wide anticipation for the potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).
Irony in ETF Dynamics
Balchunas notes the irony in the situation, pointing out that the potential approval of a Bitcoin spot ETF is likely to displace offerings like the ProShares Bitcoin Futures ETF.
While Bitcoin Futures ETFs track the price movements of Bitcoin futures contracts, they differ from spot Bitcoin ETFs, which allow investors to trade the price of BTC without holding actual cryptocurrency assets.
Spot Bitcoin ETF Anticipation
The market is eagerly anticipating the approval of a spot Bitcoin ETF with Bloomberg ETF analyst James Seyffart projecting a 90% chance of approval by January 10.
Major players such as BlackRock, Fidelity Investments, and VanEck have submitted applications adding to the optimism surrounding the potential launch of Bitcoin spot ETFs.
Grayscale’s recent victory over the SEC further aligns with the expectation that a proper ETF product is inevitable, especially considering the SEC’s increased engagement and ongoing negotiations with Grayscale.
The ProShares Bitcoin Futures ETF experiences remarkable growth, while the crypto market awaits the potential approval of spot Bitcoin ETFs. This could also mark a significant shift in investor preferences and trading dynamics. The coming weeks will likely bring further developments in this rapidly evolving landscape.