ProShares Bitcoin Strategy ETF (BITO) Surpasses $2 Billion in Assets, Sets All-Time High

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The ProShares Bitcoin Strategy ETF (BITO), an exchange-traded fund focused on Bitcoin (BTC) futures, has amassed over $2 billion in assets, reaching an all-time high. 

According to data by YCharts, BITO’s assets stood at $2,010,057,946 as of the market close on January 8, which represents a remarkable growth of 10% in just one week, as it climbed from $1.8 billion on January 2. 

Furthermore, within the past month, BITO experienced an 18% surge in assets from $1.7 billion on December 9, 2023.

ProShares global investment strategist Simeon Hyman said that speculation surrounding a spot Bitcoin ETF has been widely discussed as a driver for Bitcoin’s price appreciation.

However, he noted that Bitcoin had been on an upward trajectory throughout 2023, even in the face of challenges such as crypto-related bank issues in March and rising interest rates. 

ARK Purchases BITO Shares

In December 2023, Ark Invest, led by Cathie Wood, sold over $200 million in Coinbase shares through its ETFs. 

However, the firm made a notable purchase of $92 million worth of BITO in late December, indicating their confidence in the growth potential of the Bitcoin Strategy ETF.

The move came at a time when market speculation is rife about the imminent approval of the spot Bitcoin ETF by the Securities and Exchange Commission (SEC) by the January 10, 2024 deadline.

As broader financial markets brace for potential ETF approval, industry experts are closely monitoring the crypto stocks’ performance in the lead-up to the deadline. 

Ark Invest’s recent portfolio adjustments might be viewed as a proactive measure to position itself favorably ahead of a potential market shift or as a safeguard against market corrections.

When examining the trading activity of BITO, the daily volume on January 8 reached $811.13 million.

BITO launched in October 2021, becoming the first US fund of its kind. In the absence of ETFs that hold bitcoin directly, products that invest in bitcoin futures were thought to be the next best thing. 

The fund reached $1 billion in assets just days after hitting the market.

Grayscale’s GBTC Sees Increased Trading Volume

As reported, Grayscale’s Bitcoin Trust (GBTC) has also demonstrated significant trading volume, surpassing the majority of existing ETFs.

According to industry expert Eric Balchunas, the fund traded close to half a billion dollars on January 8, outshining more than 99% of the approximately 3,000 current ETFs.

Balchunas highlighted that if spot Bitcoin ETFs are approved this week, Grayscale will enter the market with substantial trading volume, indicating a significant advantage over its competitors.

Grayscale aims to convert its Bitcoin Trust into a spot ETF, pending approval from the Securities and Exchange Commission (SEC). 

In addition to Grayscale’s impressive trading volume, crypto mining firms have experienced robust trading activity on American stock exchanges. 

On January 8, four prominent mining companies, including Marathon Digital, Riot Platforms, Cleanspark, and Terawulf, collectively amassed a trading volume of $208 million, as per data by Yahoo Finance.

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