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ProShares Bitcoin Strategy ETF Surges Past $2 Billion in Assets

The ProShares Bitcoin Strategy ETF (BITO) logged another milestone this week by surpassing $2 billion in assets under management according to data from YCharts. As of market close on January 8, BITO’s assets reached $2,010,057,946, representing an increase of 10% in just one week from $1.8 billion on January 2.

Rapid Growth Continues

The ETF has experienced rapid growth since its October launch, rising 18% in less than one month from $1.7 billion on December 9, 2023. This growth comes despite challenges for crypto markets related to bank concerns in March 2022 and rising interest rates.

Ark Invest, led by star fund manager Cathie Wood, sold over $200 million in Coinbase shares through its various ETFs in December 2023. However, Ark then purchased $92 million worth of BITO shares in late December, indicating rising investor interest in crypto-focused ETFs according to YCharts data.

Regulatory Tailwinds?

Speculation abounds that the U.S. Securities and Exchange Commission (SEC) may approve the first spot Bitcoin ETF by January 10, 2024, which could provide more regulatory tailwinds for crypto investment vehicles like BITO. On January 8, BITO logged a daily trade volume of $811.13 million.

Grayscale’s Bitcoin Trust (GBTC) also saw high trading volume on January 8, outperforming more than 99% of the approximately 3,000 current exchange-traded funds. Grayscale is aiming to covert GBTC into a spot Bitcoin ETF pending SEC approval.

Four major crypto mining stocks collectively saw $208 million in trading volume on U.S. exchanges on January 8, demonstrating investor appetite for crypto-linked equities. Experts will be watching to see if approval of a spot Bitcoin ETF could provide a further boost.

Growth Prospects Remain Promising

While regulatory and macroeconomic uncertainties persist, BITO becoming the first U.S. Bitcoin-focused ETF to surpass $2 billion in assets under management demonstrates the tremendous upside potential for crypto investment vehicles. As digital assets and the underlying technologies continue to mature, the growth prospects for crypto ETFs like BITO appear promising.

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