In recent developments, the excitement surrounding Bitcoin exchange-traded funds (ETFs) has resurfaced, accompanied by a wave of new applications and increased capital inflows from institutional investors. Notably, the ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures fund, witnessed a surge of inflows on June 26, attracting significant attention from Bloomberg senior ETF analyst Eric Balchunas.
ProShares gains popularity among institutional investors
With its assets surpassing $1 billion, ProShares BITO experienced its largest weekly inflow in a year, reaching $65.3 million. As the first BTC-linked ETF in the United States, ProShares BITO has gained popularity among institutional investors. Balchunas noted that the fund has closely tracked Bitcoin, lagging spot prices by only 1.05% annually and featuring a fee of 0.95%. ProShares reported that the BITO fund has achieved a 59.6% gain since the beginning of 2023. The filing for a Bitcoin ETF by BlackRock on June 15 sparked an uptick in interest in Bitcoin derivatives across the market.
The Deribit crypto options exchange revealed a significant surge in Bitcoin futures open interest (OI) since the previous week, reaching $319 million as of June 25. This figure reflects a 30% increase compared to the same period in the previous week. OI serves as a measure of the total number of outstanding futures contracts yet to be settled. The resurgence of ETF trading and the resulting surge in BTC prices has also had a positive impact on Grayscale, the world’s largest crypto asset manager. The Grayscale Bitcoin Trust (GBTC), which had been trading at a substantial discount to spot BTC prices for months, has started to close the gap.
Companies intensify race for Bitcoin ETF following BlackRocks filing
According to Coinglass, the Grayscale premium, also known as its discount, currently stands at -31.2%, a significant improvement from its low point of -49% in December. While it remains uncertain whether the Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF, a new race has begun with a fresh wave of filings following BlackRock’s application. WisdomTree filed with the SEC for a spot Bitcoin ETF for the third time, and shortly after, Invesco renewed its application for a similar product.
ETF Store President Nate Geraci took to Twitter on June 25, sharing a list of ETF issuers that he believes will file or refile for a spot Bitcoin ETF based on their past filings. Geraci named First Trust, VanEck, Global X, Fidelity, and the “dark horse,” Schwab, as entities to watch closely in the race for a spot Bitcoin ETF. As the enthusiasm around Bitcoin ETFs continues to grow and institutional investors show increasing interest, the cryptocurrency market eagerly awaits regulatory decisions that could have a significant impact on the industry’s future.
