Top U.S. Bitcoin ETF Absorbs $240 Million Inflows As Spot ETF Excitement Rages
The ProShares Bitcoin Strategy ETF (BITO) – the largest existing Bitcoin ETF in the United States – has received $240 million worth of inflows over the past month.
This month has been the fund’s second-best performing month, following its launch, indicating strong anticipation for the approval of a spot ETF.
Revival of Futures ETFs
As reported by Bloomberg ETF analyst Eric Balchunas on X, BITO’s assets have almost doubled in the last 30 days, from around $850 million in early October to $1.37 billion as of November 10.
While most of this increase can be attributed to the surging price of Bitcoin (BTC) during that period, approximately $240 million has come from actual inflows.
It is predicted that the fund may break its trading volume record this week, with $2 billion worth of trades.
“It’s ironic that BITO benefits from the anticipation of a spot ETF, but will be one of the major losers when such ETFs are launched,” wrote Balchunas.
When BITO was launched in October 2021, it received $1 billion worth of inflows in just two days, making it the second-largest opening day in the history of the New York Stock Exchange (NYSE).
Seeking Bitcoin Exposure
Although BITO was the first Bitcoin ETF in the United States, it invests in Bitcoin futures contracts instead of actual BTC. Consequently, the fund’s shares do not perfectly track Bitcoin’s price like a spot-based ETF would.
The approval of a spot-based ETF is yet to happen, as U.S. regulators have expressed concerns about Bitcoin spot market manipulation. However, due to mounting public pressure and a recent court ruling in favor of Grayscale’s spot Bitcoin ETF application, analysts expect an ETF approval by early January.
Until then, BITO remains a popular choice for institutions seeking exposure to BTC if they are required to invest in the asset through an equity or an ETF.
Other popular stocks for institutional BTC exposure include Coinbase (COIN) and MicroStrategy (MSTR), as well as Bitcoin mining stocks like Marathon Digital (MARA).
Bitcoin funds have attracted significant inflows over the past month, totaling $229 million. While BTC remains the dominant asset for institutional fund flows, Ether (ETH) related funds have also received $17.5 million in inflows.