There’s already a lot of hype around the entire concept of Bitcoin ETF that was finally kick-started after the regulatory confusion over it ended in the month of October this year. This has led to the consolidation of the cryptocurrency market, although there are other options too, which are helping the digital currency domain keep up pace with its ongoing growth.
There are a number of organizations, including financial institutions such as Galaxy Digital and Grayscale, which are managing billions of dollars of investment in their portfolio, although the release of the ProShares BTC Strategy ETF (BITO) deserves the special mention here. This is because BITO is the very first Bitcoin ETF that has got approval from the US regulator, the Security, and Exchange Commission (SEC).
Just within days of approval, the total investment it amassed was an incredible amount of $1 billion, which made it the biggest Bitcoin ETF in the history of cryptocurrency. BITO doesn’t belong to the category of spot ETF. It actually tracks the performance of Bitcoin futures.
The demand for BITO is expected to remain high in the coming days, and it would have been higher if the fund belonged to the category of Spot ETF. Analysts and experts agree on the fact that Spot ETFs would have brought more demand to BTC contracts. There is also consensus among experts that a more efficient structure would have made the space even more dynamic than it is today. In the year 2020, the total amount of the cryptocurrency assets in the fund category was around $24 billion, and the number is expected to reach $63 billion by the end of 2021.
