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.

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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.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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