Sustained Demand After A Historic Launch
During its first two days of trading in October 2021, ProShares Bitcoin Strategy ETF (BITO) attracted more than $1 billion in what was one of the most successful launches in ETF history. Six months later, investor demand has remained strong and another $500 million in assets has poured into the fund. To be sure, volatility is to be expected as the digital asset space continues to evolve. But what are some of today's key trends behind BITO?
Tracking As Designed: Returns Closely Aligned With Spot Bitcoin1
Since launching six months ago, BITO has performed as designed, providing returns that have largely moved in line with spot (physical) bitcoin.
Source: ProShares. Standardized performance as of 3/31/22 for BITO: since inception (10/18/21): -28.5% (NAV)/-28.6% (Market Price). The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, maybe worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For standardized returns and performance data current to the most recent month end, see above. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in any index.
Robust Liquidity: Investor Demand Has Been Strong
BITO has posted an average daily trade volume of $234 million since inception, placing it in the top 4% of most actively traded ETFs in the United States.2 Flows remain strong, as BITO assets have grown to $1.1 billion.3
Past performance does not guarantee future results.
Falling Costs: Bitcoin Futures Premiums Have Moved Lower
The premium in bitcoin futures prices over the price of spot bitcoin has been notably lower in recent months, compared to those premiums around BITO's inception — a possible sign that the market for bitcoin futures is maturing.
Source: Bloomberg. Average annualized bitcoin futures premium calculated based on daily settlement prices.
BITO: Ease And Convenience In An ETF
BITO, the first bitcoin-linked ETF in the United States, offers investors the:
1Bitcoin returns are measured using the Bloomberg Galaxy Bitcoin Index
2Source: Bloomberg. Since BITO inception 10/18/2021–4/18/2022
3Source: ProShares. Since BITO inception 10/18/2021–4/18/2022