The Bitcoin-linked ProShares ETF reached $1 billion in assets under management in just two days.
Bitcoin-linked ProShares ETF reached $1 billion in assets under management in just two days, a record for the ETF industry. The Gold GLD ETF held the previous record, having surpassed the $1 billion mark in three days after its launch in 2004. A second future bitcoin ETF is due out next week.
The ProShares Bitcoin Strategy ETF ($BITO), the first exchange-traded bitcoin-linked fund in the United States, became the fastest ETF to reach the $1 billion asset under management (AUM) mark.
The previous record holder, the GLD Gold ETF, took three days to break ten figures and $BITO did so in just two. Since it was launched yesterday, the fund has turned over $2 billion in volume.
BITO was launched yesterday as an alternative investment vehicle for retail and institutional investors interested in indirect exposure to bitcoin. The fund invests in bitcoin futures rather than real BTC, therefore the appreciation of the fund’s share price may not match the price of bitcoin in the cash market.
An ETF investing in bitcoin futures rather than owning BTC was a trend spurred by Securities and Exchange Commission (SEC) chairman Gary Gensler. In September, Gensler said that offers seeking exposure to bitcoin through CME-regulated futures would be more likely to pass, citing concerns about “investor protection.”
A little over a month later, the first BTC-linked ETF began trading in the United States. 25
It is doubtful that a bitcoin futures ETF offers a higher level of investor protection than a spot BTC. Either way, investors can opt for the highest level of protection by buying and holding real bitcoins themselves. While it’s a subtle activity, learning how to become financially sovereign with Bitcoin is an opportunity that is sure to pay off in the long run.