The Bitcoin Futures ETF at 1: $1.8 Billion Lured, Over Half Lost
A year on from its blistering debut, America's first Bitcoin futures ETF has been an almost unqualified success, unless of course you're invested in it.
Operationally speaking, it's performance has been near-flawless. A slew of worries over cryptocurrency volatility, the depth of the market for futures and the cost of rolling its underlying contracts have all fallen by the wayside in 12 months of solid functioning for the ProShares Bitcoin Strategy ETF (ticker BITO).
The ETF has enjoyed strong demand from loyal investors and in return has -- as promised -- successfully tracked the biggest digital asset.
It's performance, on the other hand, is another story.
The fund has slumped over 70% since its launch, tracking a crypto collapse that dragged Bitcoin to around $20,000. At a year old, BITO has posted cumulative inflows of more than $1.8 billion, and yet as of Friday had just $619 million left.
“It's been a bad year -- we're looking at $1.2 billion burned,” said James Seyffart, a Bloomberg Intelligence analyst. “But if you just want exposure to Bitcoin, BITO is the best option in the ETF landscape, at least in the US.”
And investors have piled in. In the 12 months since the launch, only two saw outflows, even as digital-asset prices cratered.
BITO's inauguration last year was a watershed moment that saw the fund notch a number of superlatives: its debut was the second-most heavily traded on record, and it reached $1.1 billion under management in just two days, a record. For crypto investors, it was memorable because it marked a big step by the industry into the staid world of traditional finance. On the back of the enthusiasm surrounding the launch, Bitcoin's price rallied to new peaks, touching nearly $69,000 a
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