The ProShares Bitcoin">Bitcoin Strategy ETF (BITO) has seen massive inflows of $240 million in the past month, its 2nd highest ever. The futures-based crypto ETF is benefiting from growing anticipation of an SEC-approved spot bitcoin ETF.
BITO’s assets have nearly doubled from $850 million in early October to over $1.3 billion currently. The ETF may break volume records this week amid the influx.
Investors are piling into BITO for bitcoin exposure while awaiting a spot ETF. But BITO will likely lose appeal once spot ETFs launch, as it tracks futures not direct BTC price.
Nonetheless, BITO remains popular for institutional investors who must access bitcoin through an equity fund. Rival options like oinbase">Coinbase and MicroStrategy shares provide similar exposure.
Inflows into BITO and bitcoin funds signal growing institutional demand before a spot ETF approval, which many analysts expect by early 2023. The hype highlights bitcoin’s momentum.
