Bitcoin ETF fever returns: ‘Biggest’ inflow to ProShares’ BITO in a year

June 26, 2023 Coin Telegraph

BITO

ProShares’ BITO Bitcoin ETF saw a weekly inflow of $65 million as institutional investors have seemingly regained their mojo for Bitcoin futures.

Bitcoin (BTC) exchange-traded fund (ETF) fervor is back with a raft of new applications and an increase in capital inflows from institutional investors.

On June 26, a surge of inflows to the ProShares Bitcoin Strategy ETF (BITO) — a Bitcoin futures fund — was observed by Bloomberg senior ETF analyst Eric Balchunas.

The fund had its largest weekly inflow in a year at $65.3 million with its assets topping $1 billion.

BITO was the first BTC-linked ETF in the United States and is one of the most popular among institutional investors.

Balchunas claimed BITO “pretty much has tracked Bitcoin perfectly,” lagging spot prices by 1.05% annually and has a fee of 0.95%.

The Bitcoin Futures ETF $BITO had its biggest weekly inflow in a year as assets top $1b again. It also traded half a billion in shares on Friday, which it's only done about 5 times before via @SirYappityyapp pic.twitter.com/Xrq0lUaaTO
— Eric Balchunas (@EricBalchunas) June 25, 2023

The BITO fund has made a 59.6% gain since the start of 2023 according to ProShares. There’s been an uptick in Bitcoin derivatives interest across the board since BlackRock filed for its own Bitcoin ETF on June 15.

According to the Deribit crypto options exchange, Bitcoin futures open interest (OI) has surged since last week. It is currently $319 million as of June 25, up around 30% from the same period last week.

OI is a measure of the total number of outstanding futures contracts that have not been settled.

*BTC futures OI over the past month. Source:* *Deribit*

The resurgence in ETF trading and the resultant BTC price pump has also been good news for the world’s largest crypto asset manager, Grayscale. The Grayscale Bitcoin Trust (GBTC), which has been trading at a massive discount to spot BTC prices for months, is heading in the right direction as that gap diminishes.

According to Coinglass, the Grayscale premium, also known as its discount, is -31.2%. It fell as low as -49% in December.

It remains unclear if the Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF, but the race is now on as a new wave of filings has followed BlackRock’s.

WisdomTree, for the third time, filed with the SEC to create a spot Bitcoin ETF, just hours later Invesco renewed its application for a similar product.

On June 25, ETF Store President Nate Geraci tweeted his list of ETF issuers that he “would keep an eye on” as he believes they will file or refile for a spot Bitcoin ETF based on past filings. Geraci named First Trust, VanEck, Global X, Fidelity, and what he called the “dark horse,” Schwab.

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Rivals steadfast even as two Aussie crypto ETF providers bail

November 8, 2022 Coin Telegraph

Australia

The last week has seen two digital asset ETF providers announce their planned exit from the market amid regulator scrutiny and the prolonged crypto winter.

Two digital asset exchange-traded fund (ETF) issuers in Australia are set to leave the market amid heightened regulator scrutiny and a deepened crypto winter, though some remain bullish about the market's prospects.

In the last week, Australian crypto ETF providers including Holon Investments and Cosmos Asset Management have indicated they may be stepping back from the crypto ETF scene.

On Nov. 6, Holon said it might close its three retail crypto funds following a hardline stance from the Australian financial regulator which has accused the fund of failing to "describe the risks to investors in its target market determination filings," ac cording to a report from the Australian Financial Review (AFR).

It comes after the Australian Securities and Investments Commission (ASIC) issued an interim stop order on Oct. 17 directed at Holon's three funds due to non-compliant target market determinations (TMDs).

The AFR report notes that Holon has argued that the crypto funds were designed to be part of a diversified portfolio, not the majority of an investment strategy, though it may have fallen on deaf ears.

Another crypto ETF issuer Cosmos is also jumping ship with last week’s announcement that it would de-list its crypto ETFs from the Cboe Australia exchange.

According to the report, sources stated that Cosmos failed to attract sufficient assets under management to remain viable. It also had heavy overheads in crypto custody and professional indemnity insurance costs.

According to public disclosures in September, Cosmos had around $1.6 million in AUM for its combined BTC and ETH funds.

However, some crypto ETF providers appear to remain committed to the market, which is expected to see one million new crypto adopters over the next 12 months, according to a recent survey from crypto exchange Swyftx.

Providers currently involved in the Australian crypto ETF market include 3iQ Digital Asset Management, Monochrome Asset Management, and Global X Australia, formerly known as ETF Securities.

Global X Australia chief executive Evan Metcalf told the AFR that the firm continues to have a “strong conviction in digital assets and has no plans to close any crypto ETPs," noting:

“We are very bullish on the crypto markets in general, digital assets, and decentralized finance – we see enormous potential there.”

Metcalf did however note that the funds had experienced a "relatively quiet" reception from investors amid the current market downturn, while there was an "unwillingness" from local stockbrokers to provide clients access to its funds.

Over 200K BTC now stored in Bitcoin ETFs and other institutional products

June 3, 2022 Coin Telegraph

Bitcoin

Bitcoin ETPs now have more BTC under control on behalf of clients than ever before.

Bitcoin (BTC) investment vehicles are seeing “gargantuan” inflows this month in a fresh sign that traders’ appetite for BTC exposure is mounting.

Data from monitoring firm Arcane Research published this week shows that Bitcoin exchange-traded products (ETPs) now have record high BTC under management.

"Happier days" for Bitcoin ETPs as buyers pile in

Despite BTC price action failing to draw in buyers at over 50% below all-time highs, not everyone is feeling risk-off.

According to Arcane’s data, Bitcoin ETPs have seen a flurry of interest from institutional investors both this month and last.

In total, Bitcoin ETPs, which include products such as the ProShares Bitcoin Strategy exchange-traded fund (ETF), now have 205,000 BTC under their control — a new record.

“While the May recovery was strong in ETPs, June has seen even happier days!” Arcane analyst Vetle Lunde told Twitter followers while uploading the numbers on June 2.

“The first two days of June have seen gargantuan net inflows to Purpose, 3iQ Coinshares, and BITO, pushing the global BUM to a new all-time high of 205,008 BTC.”

*Bitcoin ETF investment chart. Source: Vetle Lunde/ Twitter*

In the first few days of June alone, more than 7,000 BTC flowed to ETPs, almost as much as for the entirety of May, which itself saw an impressive 9,765 BTC rise.

“Massive $BTC inflows into Bitcoin ETFs in June already,” Zhu Su, cofounder of asset manager Three Arrows Capital, reacted.

Little reprieve for GBTC

The Purpose Bitcoin ETF, the first Bitcoin spot price ETF to launch anywhere in the world, meanwhile had $1.294 billion worth of assets under management as of June 3, data from on-chain monitoring resource Coinglass confirmed.

*Purpose Bitcoin ETF assets under management chart. Source: Coinglass*

Things remained somewhat less rosy for industry stalwart the Grayscale Bitcoin Trust (GBTC), however.

According to Coinglass data, GBTC continues to trade near a record discount to the Bitcoin spot price, currently 28.68% as of June 3.

Previously, Cointelegraph reported on Grayscale’s ongoing battle to convert GBTC to a Bitcoin spot ETF.

*GBTC holdings, discount vs. BTC/USD chart. Source: Coinglass*

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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SEC likely to allow Bitcoin futures ETF to trade next week: Reports

October 15, 2021 Coin Telegraph

Bitcoin

The long-awaited launch of a Bitcoin exchange-traded fund could finally arrive on Monday.

The long wait for a Bitcoin exchange-traded product could soon be over according to sources reported by financial media giant Bloomberg.

Citing “people familiar with the matter” Bloomberg has reported that the U.S. Securities and Exchange Commission is poised to approve the first Bitcoin futures exchange-traded funds in the country.

The anonymous sources said:

“The regulator isn’t likely to block the products from starting to trade next week.”

A futures product is likely to be the first one approved since they are viewed more favorably by regulators. Futures are governed by the Chicago Mercantile Exchange (CME) and require investors to put down cash on margin to trade them.

Bloomberg senior ETF analyst, Eric Balchunas, is confident that the ProShares Bitcoin Strategy ETF could be the first one launched as the decision deadline is Oct. 18. The Invesco Bitcoin Strategy ETF may be approved the following day barring any further delays by the SEC.

In a tweet on Oct. 15, the analyst stated: “Pretty much done deal. Expect launches next week,” before adding the “odds now over 90% IMO.”

JUST IN: Bitcoin futures ETFs said not to face any opposition at SEC, according to multiple sources confirming this (aside, I’m hearing same thing). Pretty much done deal. Expect launches next week. Nice late night story from @kgreifeld @VildanaHajric @benbain pic.twitter.com/axT6ME4MeI
— Eric Balchunas (@EricBalchunas) October 15, 2021

SEC chair Gary Gensler has voiced favor for funds based on CME-traded Bitcoin futures filed under a 1940s law, adding more weight to the potential of a long-awaited approval.

On Oct. 14 Cointelegraph reported that Ark Invest had teamed up with 21Shares to file for an ETF that will trade in Bitcoin futures indicating that they too were confident that product approval is imminent.

Deadlines for ETF applications from VanEck and Valkyrie are also approaching on Oct. 25 so there could be a slew of them hitting exchanges over the next couple of weeks.

Monday, Oct. 18 could be a big day for Bitcoin prices as markets have been bubbling up in anticipation of this landmark event. At the time of writing, BTC had just spiked to $59,600 before a slight retreat according to CoinGecko.

Bitcoin futures ETF will likely be delayed until 2022 says research firm CFRA

October 13, 2021 Coin Telegraph

Bitcoin

Regulatory uncertainty could be the cause for yet more delays in the approval of long-awaited Bitcoin exchange-traded products.

Crypto asset investors may have a longer wait for a Bitcoin futures exchange-traded product according to Todd Rosenbluth, the senior director of ETF and mutual fund research at research firm CFRA.

Speaking on CNBC’s “ETF Edge” on Oct. 12, Rosenbluth stated that while a Bitcoin futures product is likely to be the first crypto ETF to gain approval, he cautioned that the current clouded regulatory situation could cause further delays.

There are more than 20 crypto asset-based exchange-traded products waiting for Securities and Exchange Commission approval, and the regulator is yet to pass any, instead kicking the can down the road on multiple occasions.

The researcher suggested that regulators could be waiting for all of these products to meet their goals so that they can be approved at the same time to avoid a “first-mover advantage,” before adding:

“It’s possible — in fact, we think it’s likely — that we’re going to see a delay of a Bitcoin futures ETF until 2022, until the regulatory environment is more clear.”

Van Eck Associates CEO, Jan van Eck, commented that the primary concern for the SEC is the discrepancy between actual Bitcoin prices and the price of the futures contract, in addition to the potential of funds getting too large.

When there is a Bitcoin rally, futures strategies can underperform by as much as 20% a year, he stated before adding “the SEC wants to have some visibility into the underlying Bitcoin markets.”

Van Eck also suggested that the regulator needs to gain more control over crypto trading which it appears to be attempting with its recent threats against Coinbase and the exchange’s stablecoin lending product. Other popular trading platforms such as Robinhood are already regulated and registered as broker-dealers.

Any speculation over a possible delay could hit the Bitcoin price as analysts had suggested that big investors may be buying up BTC in anticipation of an ETF approval this month. The asset has rallied 37.5% over the past fortnight to reach a local top of $58,000 on Oct. 12, but more regulatory procrastination could quash current market momentum.

Bloomberg senior ETF analyst Eric Balchunas is still confident that there is a 75% chance that an ETF will be approved this month.

Earlier this month, the SEC extended the deadline of four BTC ETFs — the Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF — for 45 days.

In September, Van Eck’s physically-backed Bitcoin ETF was delayed for the second time this year with a decision date set for Nov. 14 by the SEC.

Commodity strategist predicts Bitcoin ETF could get the nod in US next month

September 22, 2021 Coin Telegraph

Canada

A Bitcoin ETF could be approved by U.S. regulators by October. according to Bloomberg Intelligence Commodity Strategist Mike McGlone.

Bloomberg Intelligence Commodity Strategist Mike McGlone believes it is only a matter of time before the U.S. Securities and Exchange Commission (SEC) approves the country’s first Bitcoin exchange-traded fund (ETF).

In an interview with Stansberry Investor host Daniela Cambone on Sept. 21, McGlone asserted that Canada is extending a competitive lead over the United States after approving Bitcoin ETFs from 3iQ and Coinshares in April.

He emphasized that capital is flowing from the U.S. to Canada’s institutional crypto products, including from Cathie Wood’s Ark Invest. However, he believes that lawmakers in the United States will not want to miss out for much longer.

When asked about a timeframe on potential U.S. Bitcoin ETF approval, McGlone said it could happen “potentially by the end of October.” He maintained that it was likely to be a futures-backed product first, adding that it would open a “legitimization window for a massive amount of money inflow.”

McGlone also reiterated the latest report from Bloomberg Intelligence that stated Bitcoin prices hitting $100,000 was a possibility this year, and this would be driven by the approval of an ETF.

Crypto YouTuber Lark Davis shares McGlone’s price targets, observing that in previous bull markets in 2013 and 2017, the latter quarters saw huge price rallies.

#bitcoin still going to 100k this year, Q4 2013 and Q4 2017 both saw 300% + rallies.

What would make BTC do that again?

A BTC ETF getting approved in the USA.
— Lark Davis (@TheCryptoLark) September 22, 2021

The SEC is currently yet to approve a crypto ETF despite the number of applications it has received from prospective issuers continuing to mount.

Earlier this month, multinational financial services firm Fidelity Investments, lobbied the SEC to approve an ETP arguing that Bitcoin markets have already reached maturity under the regulator’s own standards.

ETP

"Happier days" for Bitcoin ETPs as buyers pile in

Little reprieve for GBTC

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