According to CoinDesk, ProShares’ Bitcoin Strategy ETF (BITO) reached a high of $1.47 billion in assets under management (AUM) this week, surpassing a record set in December 2021. The increase indicates a resurgence in institutional demand for bitcoin (BTC) from regulated and accredited investors, as numerous bitcoin spot ETF applications have been filed in the U.S. Listed on the Chicago Mercantile Exchange (CME), BITO enables investors to access bitcoin-linked returns through a regulated product.
Simeon Hyman, global investment strategist at ProShares, said in a statement, 'Investor demand for BITO remains strong, as shown by the ETF reaching a new high in assets under management. We believe this speaks to the demand for a familiar, accessible and regulated way to target the returns of bitcoin.' Hyman also noted that BITO's average daily trading volume of $160 million since inception places it in the top 5% of all U.S. ETFs.
Unlike some other bitcoin futures ETFs, BITO closely follows the asset's spot prices, which has likely contributed to its appeal among traders. In June, investors invested more than $65 million in a single week, marking the largest inflow in a year and breaking a previous 2023 high of just over $40 million in April. Bitcoin prices have rallied in recent months as major investment firms, such as BlackRock and Fidelity, await U.S. regulators' approval to offer bitcoin spot ETFs to clients – a development expected to increase buying pressure for the asset. As of Thursday morning, bitcoin was trading at just over $37,600, down 1.6% in the past 24 hours.
