With the emergence of a large number of new applications and an increase in capital inflows from institutional investors, the enthusiasm for Bitcoin (BTC) exchange traded funds (ETFs) has returned.On June 26th, Eric Balchunas, a senior ETF analyst at Bloomberg, observed a surge in inflows from the Bitcoin futures fund ProSharesBitcoinStrategy ETF (BITO)
With the emergence of a large number of new applications and an increase in capital inflows from institutional investors, the enthusiasm for Bitcoin (BTC) exchange traded funds (ETFs) has returned.
On June 26th, Eric Balchunas, a senior ETF analyst at Bloomberg, observed a surge in inflows from the Bitcoin futures fund ProSharesBitcoinStrategy ETF (BITO).
The asset size of the fund exceeds $1 billion, setting the largest weekly inflow of $65.3 million in a year.
BITO is the first ETF linked to BTC in the United States and one of the most popular ETFs among institutional investors.
Balchunas claims that BITO "almost perfectly tracks Bitcoin", falling behind spot prices by 1.05% annually at a cost of 0.95%.
Based on ProShares dataSince the beginning of 2023, the BITO fund has risen by 59.6%.From BlackRockSince applying for the launch of its own Bitcoin ETF on June 15th, interest in Bitcoin derivatives has risen across the board.
According to data from the Deribit Crypto Options Exchange, Bitcoin futures open interest contracts (OI) have surged since last week. As of June 25th, it is currently $319 million, an increase of approximately 30% compared to the same period last week.
OI is an indicator that measures the total number of open futures contracts that have not yet been settled.
The recovery of ETF trading and the resulting increase in BTC prices are also good news for Grayscale, the world's largest crypto asset management company. The Grayscale Bitcoin Trust Fund (GBTC) has been trading at significant discounts on spot Bitcoin prices for several months, and as the gap narrows, it is moving in the right direction.
According to Coinglas' data, the grayscale premium (also known as discount) is -31.2%. The decline in December was as low as -49%.
It is unclear whether the U.S. Securities and Exchange Commission (SEC) will approve the spot bitcoin ETF, but with a new wave of applications from BlackRock, the competition has now begun.
WisdomTree submitted its third application to the SEC to create a spot Bitcoin ETF, and a few hours later, Invesco updated its application for similar products.
On June 25th, ETFStore President Nate Geraci posted on Twitter a list of ETF issuers he "will closely monitor" because he believes they will submit or resubmit spot Bitcoin ETFs based on past applications. Gerald named FirstTrust, VanEck, GlobalX, Fidelity, and his so-called 'dark horse' Schwab.
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