… But someone is buying the dip?ProShares’ BITO ETF saw its largest net inflows since its launch week last week, leading the funds’ bitcoin exposure to grow by 4,115 BTC.
Last week was a massive week for BITO, as the fund saw net inflows amounting to 4,115 BTC. This has pushed BITO’s bitcoin equivalent exposure to a new all-time high of 31,585 BTC. ProShares has become the largest bitcoin ETF provider after surpassing Purpose’s AUM during Friday’s redemption carnage in Purpose. Last week’s inflows are nearly as high as the monthly inflows to BITO in November and are the second-highest weekly net inflows to BITO, only surpassed by the massive 19,065 BTC equivalent inflows during the launch week. This suggests that at least some U.S. investors are eyeballing the current sell-off in BTC as an attractive point of entry, taking advantage of forced sellers elsewhere. However, the futures-based structure disincentivizes long-term exposure, suggesting that this is driven by short-term positioning for an expected relief rally. Today, ProShares will launch a short bitcoin ETF (BITI). Several have noted the timing of the BITO and BITI launches. Maybe this might contribute to breaking the BITO curse?
Source: Purpose, ProShares