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- 1 Bitcoin ETFs are showcasing a good omen one after the other: BTC hitting $30K ProShares ETF biggest inflows.
- 2 ETF experts believe more players are in queue to join the race for spot BTC ETF.
The exchange traded funds (ETFs) are among the trending subjects around the financial markets, and the crypto market seems to have also picked the financial product, resulting in the emergence of crypto ETFs. Futures BTC ETF from ProShares dubbed Bitcoin Strategy ETF (BITO) is one such example. First of its kind, the financial products in the cryptocurrency space have recently reported to witness significant inflows.
Bloomberg ETF analyst, Eric Balchunas went on to Twitter on Monday, June 26 and tweeted about the Bitcoin Futures ETF gaining the biggest weekly inflow. The assets have hit the valuation of $1 Billion in the wake of heavy inflow.
The Bitcoin Futures ETF $BITO had its biggest weekly inflow in a year as assets top $1b again. It also traded half a billion in shares on Friday, which it's only done about 5 times before via @SirYappityyapp pic.twitter.com/Xrq0lUaaTO
— Eric Balchunas (@EricBalchunas) June 25, 2023
The ETF reportedly had an inflow of $65.3 Million, the largest weekly inflow in a year for the popular fund.
The BITO ETF has gained over 65% of its value since the starting of this year. Currently, it is trading at $17.41 after an increase over 2.5% in the last 24 hours.
Proshares Bitcoin Strategy ETF (BITO) is the first Bitcoin futures ETF in the crypto space to receive approval from the US SEC. BITO is the first fund linked with BTC operating in the United States. It’s also among the popular financial products across institutional investors.
Balchunas noted the ETF tracked Bitcoin (BTC) “perfectly,” although it sometimes got “trashed.” He added BITO had lagging spot prices by 1.05% per year and 0.95% in fee.
Bitcoin ETF Flood in the Arena
The recent wave of ETF filings following resurfaced after the BlackRock filing for spot Bitcoin ETF with the Securities and Exchange Commission (SEC) on June 15, 2023. BlackRock stepping up its crypto game has boosted the financial products applications across the traditional finance (TradFi) players.
In the following days, WisdomTree and Invesco-like financial institutions were reported to file for spot Bitcoin ETFs with the US financial regulator. Another leading financial asset manager, Fidelity Investments was also said to apply for the spot BTC fund.
Earlier another digital assets exchange traded funds firm, Valkyrie Funds, filed for spot Bitcoin ETF. On the other hand, ETF provider Volatility Shares is said to start its leveraged Bitcoin ETF from Tuesday, June 27, 2023.
Bitcoin Price Jump in the Wake of ETF Filings
Bitcoin price surged last week and hit the $30,000 mark, apparently after the soaring of ETF filing. Many analysts consider this to be a good omen for the biggest cryptocurrency and a push for the price to enter the bull phase on the back of consistent filings.
Institutional investors are also active in the space where the inflows in ProShares BTC ETF showcases the fresh example.
However, the skepticism was registered by another Bloomberg analyst, Mike McGlone. He argued that though the number of ETF filings are on the rise, there might still be blockades for BTC to maintain the highs. The analyst even predicted the cryptocurrency to fall below $20,000 given the challenges that lie ahead.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
