Bitcoin futures ETF surpasses $1 billion in assets under management in record-breaking two days
The ProShares Bitcoin ETF broke an 18-year-old record for the quickest fund to reach one billion dollars in assets under management. Since the ProShares Bitcoin Strategy ETF began trading this week, it has become the fastest-growing fund in history, surpassing $1 billion in assets under management in only five days (AUM).
The highly anticipated debut of the United States’ first Bitcoin futures exchange-traded fund, BITO, has resulted in a number of significant milestones.
According to Bloomberg senior ETF analyst Eric Balchunas, the fund became the fastest to achieve a ten-figure AUM in history after just two days of trading. BITO quickly eclipsed the previous record holder, a gold-based fund known as GLD, which reached the billion-dollar milestone in 2004 in three days.
He said that this was “poetically appropriate,” likely in reference to Bitcoin’s characteristics as a store of wealth and its analogy to digital gold.
“I’ve never seen anything like this,” Balchunas remarked. I’m sure ProShares is astounded,” he said in response to a tweet from Bloomberg Intelligence research analyst James Seyffart, who updated the original graphic.
Balchunas said that if this activity continues, there may be no contracts available to purchase, pointing to a tweet by ETFStore President Nate Geraci saying that almost 45% of BITO exposure is currently in November futures contracts.
“If $BITO continues at this rate of inflows, it will run out of futures to purchase before the end of the month owing to position limitations.”
Additionally, the ProShares fund surpassed the record for the highest-ever first day of organic volume, which reached $1 billion on Oct. 19. Over 24 million shares were exchanged on its launch day, and the ETF has already moved in excess of $2 billion in volume since it began trading.
According to Balchunas, the second Bitcoin futures fund will be launched on Friday. This is very certainly the Valkyrie Bitcoin Strategy ETF, which has reverted to the ticker BTF in preparation. The old ticker BTFD was also used in crypto circles to allude to “buy the dip,” which may not have sat well with the SEC.
According to CoinGecko, the momentum has pushed Bitcoin prices to a new all-time high of $67,276 on Oct. 20. At the time of publication, the asset had declined marginally, trading around the $65,230 level.