[NEWS] BITO Futures ETF breaks record, assets under management reach $1.47 billion

ProShares' Bitcoin Futures ETF "BITO" has broken a record for assets under management (AUM). AUM reached $1.47 billion, the highest level since December 2021.

The rise comes amid hopes for approval of a Bitcoin spot ETF.

Simeon Hyman, a strategist at ProShares, said investor demand for BITO remains strong, "which speaks to the demand for a familiar, accessible, and regulated way to target Bitcoin (BTC) returns."

He added that "BITO's average daily volume of $160 million since its inception places it in the top 5% of all U.S. ETFs."

▶︎BITO Bitcoin Holdings (Source: ProShares)

Unlike other Bitcoin futures ETFs, BITO closely tracks Bitcoin spot prices, which has increased its appeal among investors, he noted.

Investors reportedly pumped in $65 million in one week in June. This was the largest inflow in the past year, beating the previous record of $40 million in 2023 recorded in April.

Bitcoin optimism spreading

Optimism about Bitcoin has been spreading recently.

Ycharts data shows that the discount at which Grayscale Bitcoin Trust (GBTC) was trading has been reduced to a record high of 8.09% compared to the fund's net asset value (NAV), the lowest since July 2021. The ETF has been trading at a discount since February 2021, hitting an all-time low of nearly 50% in December last year.

The rise in market value is also affecting the increase in BITO's assets under management. At the time of writing, the price of Bitcoin is $44,000 (approximately 6.38 million yen), up about 160% over the past year.

One factor behind the rise in Bitcoin's price is the existence of a Bitcoin spot ETF, which is widely expected to be approved as early as January next year, but another factor is the halving that will occur around April.

An analyst at Standard Chartered Bank said, "Everything is working as expected. Bitcoin's dominance continues, and the global digital asset market capitalization has increased from 45% in April to 50%." He also expressed the view that the price of Bitcoin will reach $100,000 (approximately 14.6 million yen) by the end of 2024, and predicted that it will rise to $50,000 (approximately 7.28 million yen) by the end of the year.

Reference:Report
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