ProShares Bitcoin Strategy ETF [BITO], the first BTC-linked ETF in the United States has recorded the largest weekly inflow in a year at $65.3 million with its assets topping $1 billion, senior analyst Eric Balchunas noted.
Although BITO has underperformed BTC year-to-date, the asset notched over a 3% gain on the day, reaching $17.57, according to Yahoo Finance.
The development signifies a revival of these asset classes supported by a rise in institutional investors’ capital inflows.
Following a week of legacy institutions showing interest in financial instruments, BTC held ground above $30,000.
Most importantly, the U.S. Securities and Exchange Commission [SEC] gave thumbs up to the nation’s first leveraged BTC futures ETF offered by Florida-based Volatility Shares.
Securities like equities and commodities are bundled together in an ETF, or exchange-traded fund. Without directly owning the securities, investors can obtain exposure to them by purchasing shares of an ETF. There are two primary categories of Bitcoin ETFs: futures and spots.
The BITX fund for one, will be a leveraged ETF. Leveraged funds boost an index’s returns by using debt or financial derivatives, in this case, Bitcoin futures. Investors may see both short-term gains as well as suffer significant losses.
According to the BITX fund’s website, the “2x BTC Strategy ETF” is slated to go live on June 27 on CBOE BZX Exchange.
Meanwhile, Bitcoin decreased marginally by 1% to $30,416 over the last 24 hours to 7:30 a.m. in Hong Kong per CoinMarketCap. The market capitalization of the largest crypto in the world has however gained more than 15% over the past week.
Bitcoin ETFs Market Has Heated Up
Also, for the first time in months, BTC’s total market cap crossed above 50% on June 19, data from Tradingview showed.
This comes after a slew of applications filed by investment firms such as BlackRock, WisdomTree, and Invesco with the SEC to launch spot Bitcoin ETFs. While the regulator has granted permission to a number of futures-based crypto ETFs, it has yet to approve spot products.
After the SEC sued two of the biggest cryptocurrency exchanges earlier this month, legalizing BITX is nevertheless considered a breath of fresh air for the digital asset sector. Gary Gensler, the head of the regulatory body, has established himself as a steadfast opponent of cryptocurrencies.