ProShares Futures Bitcoin ETF Hits ATH on Spot ETF Hype

Amidst growing anticipation and hype around spot Bitcoin ETF, ProShares’ Future BTC ETF ‘BITO’ has hit a new All-Time High (ATH).

ProShares Futures BTC ETF Performing Well

According to an X post by Bloomberg ETF analyst James Seyffart, ProShares’ BITO is closing in on $1.5 billion in Total Value Locked (TVL). This comes barely two weeks after Eric Balchunas acknowledged that the product performs outstandingly well. Balchunas highlighted that ProShares Bitcoin Futures ETF had doubled in value within 30 days. 

All this #Bitcoin ETF hype has driven ProShares' $BITO (Bitcoin Ffutures ETF) to a new all time high in assets. Closing in on $1.5 billion pic.twitter.com/b8advV1uGo

— James Seyffart (@JSeyff) November 29, 2023

At the time, the popular analyst attributed the value surge to the industry-wide anticipation for spot Bitcoin ETF approval from the United States SEC. One X user pointed out the irony in the relationship between ProShares Bitcoin Futures ETF and the potential spot BTC ETFs. 

Once the spot Bitcoin ETF gets approved by the SEC, it is bound to displace products like ProShares BTC Futures ETF. Spot ETFs allow investors to legally trade the price of BTC without owning a Bitcoin address, or privacy keys. This is unlike Futures which only mimics the spot price of Bitcoin and offers exposure to the price movements of Bitcoin futures contracts.

Bitcoin ETF Approval Odds Stays at 90%

The optimism for the agency’s positive decision is still on and has even intensified in recent days. Experts are still voicing their positivity on the potential of a spot Bitcoin ETF approval. Balchunas had reiterated his previous prediction that the SEC approval is a matter of time.

He boldly stated that the odds of receiving approval remain at 90%, just as was earlier speculated.

Franklin Templeton and Hashdex just had their spot Bitcoin ETF applications delayed by the SEC on the premise that “the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.’” 

With respect to the delay, the SEC is now seeking feedback from the public on whether Templeton’s application should be approved or disapproved. Seeing that the SEC provided the update for Franklin Templeton’s application before the deadline of January 1st, 2024, this suggests that the regulator may be streamlining all spot BTC ETF applications for mass approval in January.