The market is since last summer enormously optimistic about the arrival of spot ETFs for Bitcoin (BTC). At least that’s the plan – it’s not yet entirely certain whether these special stock market funds will actually come. In any case, there are already funds based on futures for the largest cryptocurrency. One of the biggest has set a new record today.
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ProShares’ Bitcoin ETF hits record
There are already several exchange traded funds (ETFs), most of which are based on Bitcoin futures contracts. At the time of writing, ProShares’ Bitcoin Strategy ETF with the ticker symbol BITO is the largest exchange fund based on these futures. This fund is listed on the Chicago Mercantile Exchange (CME).
BITO set a new record this week. This was written by CoinDesk, who spoke with ProShares Strategy Director Simeon Hyman. Last week, assets under management reached a high of $1.47 billion. This is more than the previous record, which was set in December 2021.
Therefore, investors want to invest in Bitcoin, probably due to the huge optimism in the crypto market and especially with regard to the launch of more ETFs. ProShares does not yet plan to convert BITO into a spot ETF like crypto asset manager Grayscale.
The BITO Bitcoin fund is not the largest
The latter wants to convert the existing GBTC trust fund into a spot ETF. This would mean that Grayscale already has a significant amount of assets under management, as GBTC has a market value of more than $23 billion at the time of writing. That could give it a big lead over the other funds, although investment bank JP Morgan believes GBTC could suffer a major exodus once the fund is approved.
In any case, ProShares’ BITO fund is certainly not the largest at the moment – that is GBTC by a wide margin. There are currently about ten different applications for Bitcoin spot ETFs in the US Securities and Exchange Commission (SEK). Analysts are very optimistic about the approval chances, which could lead to significant price increases.
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