Bloomberg senior ETF analyst Eric Balchunas reported that on June 26, the ProShares Bitcoin Strategy ETF witnessed its largest weekly inflow in a year, totaling $65.3 million and pushing its assets past the $1 billion mark.
BITO, which is a Bitcoin futures fund and the first BTC-linked ETF in the United States, has become a favorite among institutional investors.
Balchunas noted that the fund has closely mirrored Bitcoin’s performance, trailing spot prices by just 1.05% annually. Additionally, BITO carries a fee of 0.95%.
According to ProShares, the BITO fund has recorded a gain of 59.6% since the beginning of 2023.
The interest in Bitcoin derivatives has seen a surge across the market following BlackRock’s application for its own Bitcoin ETF on June 15. Deribit, a crypto options exchange, reported a significant increase in Bitcoin futures open interest, which currently stands at $319 million as of June 25, representing a rise of approximately 30% compared to the previous week.
The resurgence in ETF trading and the subsequent boost in BTC prices have also brought positive news for Grayscale, the world’s largest crypto asset manager.
The Grayscale Bitcoin Trust (GBTC), which had been trading at a substantial discount to spot BTC prices for months, is now moving closer to narrowing the gap.
At present, the Grayscale premium, or discount, stands at -31.2%, a significant improvement from its low of -49% in December, according to Coinglass.
Although it remains uncertain whether the Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF, a race has commenced with a new wave of filings following BlackRock’s application. WisdomTree has filed with the SEC for a spot Bitcoin ETF for the third time, and Invesco has also renewed its application for a similar product.
ETF Store President Nate Geraci has identified a list of ETF issuers that he believes are likely to file or refile for a spot Bitcoin ETF based on their past filings.
Geraci mentioned First Trust, VanEck, Global X, Fidelity, and the potential “dark horse,” Schwab, as issuers to keep an eye on.
The competition to launch a spot Bitcoin ETF is heating up, indicating a growing interest from investors and institutions in gaining exposure to Bitcoin through regulated investment vehicles.
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