tl;dr
The ProShares Bitcoin Strategy ETF (BITO) has experienced a significant decline in daily trading volume following the launch of spot ETFs directly investing in cryptocurrency. While BITO has seen a 75% decrease in shares traded on the NYSE and a net outflow of over $270 million, spot ETFs have regis...
The ProShares Bitcoin Strategy ETF (BITO) has experienced a significant decline in daily trading volume following the launch of spot ETFs directly investing in cryptocurrency. While BITO has seen a 75% decrease in shares traded on the NYSE and a net outflow of over $270 million, spot ETFs have registered a cumulative trading volume of $14 billion and amassed over $1.2 billion in investor money in just one week. Despite this, observers anticipate that BITO will continue to be an essential hedging instrument in the market, especially for authorized participants (APs) who may not have access to CME futures or outright bitcoin.
Activity in ProShares Bitcoin Strategy ETF (BITO), the world’s leading bitcoin (BTC) futures-based exchange-traded fund (ETF), has cooled significantly since the launch of ETFs directly investing in the cryptocurrency began trading in the U.S. on Jan. 11. On Thursday, BITO shares worth just over $500 million changed hands on the NYSE, a 75% slide from the record $2 billion registered on Jan. 11, according to data tracked by crypto exchange Coinbase. BITO has witnessed a net outflow of over $270 million over the same period, according to data source ETF.com. Meanwhile, 11 spot ETFs registered a cumulative trading volume of $14 billion in the first week, a tally bigger than all other ETFs launched in 2023, per Coinbase. These funds have amassed over $1.2 billion in investor money in one week since inception.
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