The ProShares Bitcoin Strategy Futures Exchange Traded Fund (ETF), known by its ticker symbol BITO, has experienced a surge in investor interest, attracting a staggering $1.049 billion in inflows.
As reported by ETF.com, the fund witnessed $14.9 million in inflows on June 29, followed by an additional $11.9 million on July 3, bringing its total Assets Under Management (AUM) to $1.04 billion.
Factors Responsible for the ProShares Inflow
The surge in inflows can be attributed to the recent rally in spot Bitcoin ETFs ignited by renowned asset manager BlackRock. To put this into perspective, on June 15, the day BlackRock submitted its ETF application, the fund’s AuM stood at $822 million.
BlackRock’s foray into the crypto market with its spot Bitcoin ETF filing has certainly sparked renewed interest among investors. The announcement and subsequent filing from other firms including Invesco, WisdomTree, and Fidelity demonstrate the growing demand for crypto and the potential benefits of providing investors with a regulated vehicle for exposure to Bitcoin.
The Aim of ProShares BITO Fund
ProShare’s BITO fund, the first-ever Bitcoin ETF approved by the U.S. Securities and Exchange Commission (SEC), has garnered considerable attention since its launch. Designed to track the performance of Bitcoin, the fund offers investors a regulated and convenient way to gain exposure to the world’s most prominent crypto.
The recent influx of over $1 billion in inflows demonstrates the market’s confidence in the ETF’s potential and the enthusiasm surrounding Bitcoin.
Spot Bitcoin ETF Impacts Market Positively
The excitement and anticipation surrounding the potential launch of a spot bitcoin ETF have had a positive impact on the crypto fund space, according to European asset manager CoinShares.
In their report, CoinShares highlighted strong weekly inflows into crypto asset management products for the second consecutive week. Last week, the industry saw $125 million in inflows, bringing the total inflows over the past two weeks to $334 million.
SEC Delays Approval
However, several applications submitted to the SEC have been met with rejections or delays as the SEC. The SEC’s primary concern is the potential for market manipulation and the lack of sufficient surveillance mechanisms to address these risks.