The cryptocurrency community is closely watching the U.S. Securities and Exchange Commission’s (SEC) decision on spot Bitcoin ETFs, while the ProShares Bitcoin Strategy ETF (BITO) has reached a record high, surpassing $2 billion in value. This marks the highest level ever for the futures-based Bitcoin exchange-traded fund.
Simeon Hyman, ProShares’ Global Investment Strategist, reported that the fund’s value hit $2.010 billion at the close of the trading session on January 8, representing a 10% increase over the week from $1.8 billion on January 2, and an 18% increase over the month from $1.7 billion on December 9, 2023.
Despite challenges such as banking issues in the crypto market, rising interest rates, and other problems on crypto exchanges, Bitcoin’s price has risen for a significant part of 2023. Speculations about a spot Bitcoin ETF have been cited as a possible catalyst for the price increase.
Hyman also highlighted the growing interest in Bitcoin and the difficulty and expense of short-term investments in cryptocurrencies. He mentioned that BITI and SETH are the only U.S. ETFs available that allow investors to profit from a decline in Bitcoin or Ethereum prices, respectively, through futures-based short Bitcoin and short Ethereum ETFs.
Ark Invest, led by Cathie Wood, made headlines in December 2023 by selling over $200 million in Coinbase shares through its ETFs and subsequently purchasing $92 million worth of BITO by the end of the month. BITO’s daily trading volume on January 8 was reported at $811.13 million.