ProShares BITO Bitcoin Futures ETF Records Impressive Weekly Return of $65.3 Million
ProShares BITO Bitcoin Futures ETF Records Impressive Weekly Return of $65.3 Million
The ProShares Bitcoin futures ETF, trading under the ticker "BITO," has experienced its most significant weekly return in a year, amounting to $65.3 million.
This surge in returns can be attributed to the renewed investor interest in Bitcoin exchange-traded funds following the filing of spot Bitcoin ETF approvals by several financial institutions.
Notably, asset management giants BlackRock, WisdomTree, and now Invesco have sought approval for such funds from the US Securities and Exchange Commission (SEC).
Invesco Joins the Race:
Joining the ranks of prominent asset management firms, Invesco filed for approval of a spot Bitcoin ETF with the SEC on June 21. With $1.49 trillion worth of assets under management, Invesco's move highlights the growing acceptance and interest in digital assets among institutional players.
It is worth noting that Invesco had previously filed for a spot Bitcoin ETF with Galaxy Digital in 2021, further solidifying its commitment to this emerging market.
BITO Reaches $1 Billion Milestone:
BITO's value experienced a notable surge, reaching $1 billion on Friday, June 23, according to a tweet by Bloomberg ETF expert Eric Balchunas.
Balchunas also emphasizes that this milestone has only been achieved five times in the history of the ETF, underscoring the recent positive developments and investor confidence surrounding Bitcoin-related products.
Impressive Performance and Outlook:
CoinTelegraph reports that the BITO fund has gained 59.6% year-to-date, showcasing its robust performance. In the three-month and six-month performance figures, the overall return stood at 14.04%.
Balchunas adds that while BITO has slightly lagged behind spot Bitcoin by 1.05% on an annualized basis, its fee of 0.95% only incurs 10 basis points of roll costs, which is considered negligible. This analysis underscores the outstanding performance of BITO thus far in the year.
Growing Interest in Bitcoin Futures:
As of June 25, Bitcoin futures open interest, which tracks the total number of futures contracts to be settled, has surged to $319 million. This represents a remarkable 30% improvement from the same period a week ago, highlighting the increasing involvement of investors in Bitcoin futures markets, CoinGape reports.
Awaiting Regulatory Developments:
At present, there is no news regarding the pending approval of spot Bitcoin ETFs from the SEC. However, the series of filings by major asset management firms indicates growing confidence in digital assets, despite existing regulatory barriers. Investors are eagerly anticipating further developments in this space.
To Wrap it Up:
ProShares BITO Bitcoin futures ETF has achieved a substantial weekly return of $65.3 million, marking its largest return in a year. The filing of spot Bitcoin ETFs by influential asset management companies such as BlackRock, WisdomTree, and Invesco has reignited investor interest in Bitcoin-related products.
The remarkable performance of BITO, as well as the increasing open interest in Bitcoin futures, indicate the growing confidence and acceptance of digital assets in the investment landscape. While awaiting regulatory approvals, the market remains optimistic about the future of Bitcoin ETFs and the broader digital asset industry.
