Spot Bitcoin ETFs Outshine ProShares Bitcoin Futures Emerging as Close Rivals
Highlights
- According to a Bloomberg report, Bitcoin ETFs are overshadowing the ProShares Bitcoin futures ETF.
- Blackrock's Bitcoin ETF is in the top 7% of all ETFs by market capitalization
- ETF experts and proponents of cryptocurrencies agree that one month after its launch, Bitcoin ETFs are demonstrating unquestionable success on key trading indicators.
Spot Bitcoin ETFs have gained tremendous inflows in the past week. Since the inflows of Bitcoin ETFs have climbed to an all-time high, they have emerged as a close rival to other ETFs that were originally a market heavyweight. According to a Bloomberg report, Bitcoin ETFs are overshadowing the ProShares Bitcoin futures ETF.
ProShares Bitcoin futures ETF snubbed in popularity
Prior until recently, the leading exchange-traded fund associated with cryptocurrencies was the $2 billion ProShares Bitcoin Strategy portfolio. The competition from rival funds has made the futures-based ETF’s outlook more complex. According to Bloomberg, since their US debut on January 11, nine new exchange-traded funds (ETFs) that invest directly in the largest digital asset have drawn in over $10 billion in capital. The newly launched spot Bitcoin ETFs have emerged as a new investor favorite as compared to the ProShares offering.
Blackrock Bitcoin ETF climbs to be among the top ETFs
Previously, Blackrock’s IBIT raised about $500 million and saw inflows skyrocketing. IBIT has increased to over $5 billion in just 23 trading days, according to Bloomberg analyst Eric Balchunas. This puts it in the top 7% of all ETFs by market capitalization. This is an exceptionally robust second wind for a conventionally new offering.
With $4 billion in net inflows to date, spot Bitcoin ETFs have seen significant inflows recently. Furthermore, the 11 Bitcoin ETFs saw the most single-day net inflow of $631 million on Tuesday, February 13. The current increase in the price of Bitcoin is a result of the financial inflow into these funds.
Bitcoin ETFs outlook: what to expect in the future?
ETF experts and proponents of cryptocurrencies agree that one month after its launch, spot Bitcoin ETFs are demonstrating unquestionable success on key trading indicators. The launch of Bitcoin ETFs demonstrated that investors still need to be exposed to Bitcoin through traditional investment vehicles. The bitcoin ecosystem is evolving, as seen by the markets’ recognition of digital assets as a genuine asset class. It is anticipated that the market size and assets under management for Bitcoin ETFs will rise in the future. All of the freshly launched ETFs are now priced by the market to perform well in the near term and prove to be a sustainable investment in the long run.
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