ProShares’ Bitcoin Strategy ETF has 'biggest weekly inflow in a year'

Quick Take

  • ProShares’ Bitcoin Strategy ETF just had its largest weekly inflow in a year.
  • It now holds over $1 billion worth of Bitcoin futures

ProShares Bitcoin Strategy ETF (BITO) had its largest weekly inflow in a year, according to data from Factset.

The fund now holds over $1 billion worth of Bitcoin futures, as noted by Bloomberg Senior ETF Analyst Eric Balchunas, who first highlighted the data on Twitter.

BITO Fund Flows Chart. Image: Factset.

BlackRock's filing for a spot Bitcoin ETF on June 15 saw the world's largest cryptocurrency by market capitalization rise to over $30,000 and an increase in interest in Bitcoin derivatives. BITO was the first Bitcoin-linked ETF in the US and is one of the most popular among institutional investors, allowing them to gain exposure to Bitcoin-linked returns with a regulated product.

Highlighting the performance of the ETF, Balchunas added: "Interesting thing regarding BITO, even though it got trashed by some because futures roll costs, it pretty much has tracked bitcoin perfectly. It's lagged spot by 1.05% annually, but its fee is 0.95%, equalling only 10bps of roll, extra costs, which is rounding error, many had predicted over 5% per year."

The recent surge in Bitcoin prices, reaching a recent high of over $31,000 and marking a 14% monthly gain, appears to be spurred by interest from institutional ETF filings.

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