ProShares Bitcoin ETF Tops $1B Amid Flurry of Filings

As Bitcoin ETF applications flood the market, ProShares Bitcoin Strategy ETF is the main beneficiary so far.

Man on top of the stairs holding a huge Bitcoin.
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  • ProShares Bitcoin Strategy ETF (BITO) sees its largest inflow in a year. 
  • Assets surpassed $1 billion once again.
  • The surge in inflow comes amid a surge of Bitcoin ETF filings. 

The recent surge in Bitcoin ETF filings has caught the crypto community’s attention. Amid this excitement, ProShares Bitcoin Strategy ETF (BITO) was the main beneficiary. 

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The largest Bitcoin ETF has seen the largest inflow in a year, pushing its assets over the $1 billion mark. This development points to growing institutional interest in Bitcoin. 

ProShares Bitcoin ETF Sees Yearly High in Inflows

Amid the surge of Bitcoin’s price to $30,000, ProShares Bitcoin ETF saw record inflows this year. Investors put over $65 million in the fund over the week ending on Sunday, June 25, helping to push the fund over $1 billion in value. 

This milestone underscores the growing interest in Bitcoin ETFs among institutional investors. This surge in inflow comes amid a flurry of Bitcoin ETF filings, which some have seen as a trend in institutional interest for crypto.

For instance, BlackRock, the world’s largest asset manager, filed for a spot Bitcoin ETF. Following this, WisdomTree re-filed its Bitcoin ETF application, which US regulators initially rejected.  

Understanding ProShares Bitcoin ETF’s Performance

Eric Balchunas, a senior ETF analyst at Bloomberg, explains that the ProShares Bitcoin Strategy ETF (BITO) has performed very closely to the actual price of Bitcoin, with only a slight lag of 1.05% per year. This means that if Bitcoin’s price increased by 10% over a year, the ETF would increase by roughly 9.95%.

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The ETF charges a fee of 0.95% per year for managing your investment. So, if you invested $100, you would pay 95 cents in fees over a year.

The term “roll costs” refers to the expenses associated with maintaining futures contracts, which are agreements to buy or sell Bitcoin at a future date. These costs can add up over time and impact the ETF’s performance. However, Balchunas points out that these costs only account for an additional 0.10% (or ten basis points, abbreviated as ‘bps’) annually. This is much lower than the 5% per year that some had predicted.

In simpler terms, despite some costs associated with how the ETF operates, it has closely tracked the performance of Bitcoin, making it a viable option for investors looking to gain exposure to Bitcoin’s returns.

On the Flipside

  • The SEC has yet to approve a single spot Bitcoin ETF.
  • Bitcoin ETFs give lesser returns than holding BTC directly. 

Why This Matters

The surge in BITO’s inflows and the flurry of Bitcoin ETF filings indicate the growing institutional interest in Bitcoin. 

Read more about the latest surge in ETF filings: 

Valkyrie & BlackRock Among Giants to Launch Bitcoin ETFs: Will the SEC Approve? 

Read more about Bybit’s latest expansion in Cyprus

Bybit Seizes Opportunity in Cyprus as Binance Departs

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.