ProSahres’ first US bitcoin ETF has seen new record inflows since news of a potential BlackRock ETF.
Within just a few days, several million US dollars flowed into the ProShares ETF.
Other ETFs for the largest cryptocurrency will follow.
The news about a bull run triggered by BlackRock seems to continue to inspire investor sentiment. ProShare’s Bitcoin ETF (BITO) has seen new record inflows since the asset giant’s ETF filing.
Additionally, the SEC recently approved the US’s first leveraged BTC ETF. Will other ETFs follow for what is probably the most popular cryptocurrency at the moment?
ProShares Bitcoin ETF with record values
Since October 2021, ProShares has been the first provider in the USA to offer a Bitcoin ETF. Investors do not invest directly in the cryptocurrency with this futures ETF. However, the exchange product tracks the BTC price and thus enables investments without owning the crypto assets themselves.
Despite – or likely because of – BlackRock’s June 16, 2023 Bitcoin spot ETF filing, the ProShares Bitcoin ETF saw new record inflows. In June, for example, the net inflow into the ETF increased by 65 million US dollars. With this, the total value of the assets managed by the ETF is not only over the 1 billion US dollar mark again.
Trading volume on June 23, 2023 also reached unprecedented heights, as Bloomberg analyst Eric Balchunas explained:
“One billion shares traded on Friday, which has only happened five times before.”
But other ETFs could soon benefit from the current hype surrounding one from BlackRock. Shortly after the influential wealth giant’s application, several ETF applications followed from other well-known companies
After BlackRock ETF: more to come?
If the Securities and Exchange Commission approves BlackRock’s bitcoin spot ETF filing, it could also approve ETF filings from Valkyrie, Invesco, WisdomTree, and BitWise that were filed shortly thereafter.
Fortunately, the SEC spoke out in favor of another ETF, at least with the leveraged Bitcoin ETF from Volatility Shares. According to the official registration, it will be possible with this from Tuesday, June 27, 2023 to bet on the BTC course with 2x leverage. The design of the ETF is tailored to institutional needs. Therefore, the price of the ETF is based on the BTC price of the CME (Chicago Mercantile Exchange), the largest BTC exchange by trading volume.
Many members of the crypto community are hoping that the SEC will approve more ETFs due to BlackRock’s influence. However, it remains to be seen whether the SEC will do this and actually open the doors for a new, institutional crypto bull run. Nevertheless, current developments indicate increased interest from institutional providers and investors.
Picture Copyright: irenmoroz
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