Bloomberg’s senior ETF analyst, Eric Balchunas, commented on his Twitter account on this feat of the fund, which has reached this ten-figure mark after just two days of trading.
“If $ BITO maintains this inflow rate, it will have no futures left to buy at the end of the month due to position limits,” he explained.
The ProShares fund has also broken the record for the highest organic volume in history, which reached $ 1 billion on October 19, when it was launched. More than 24 million shares were traded on its debut day and since the ETF went live, it has already has traded more than $ 2 billion in volume.
Optimism around digital assets, which led to the Bitcoin to reach new all-time highs, has led the entire market for cryptocurrencies to also reach a new record above 2.7 trillion dollars.
What is the new fund?
The new fund will be “actively managed”. In a statement detailing the conditions of the product, it states that it seeks to invest in standardized and cash settled bitcoin futures contracts, which are traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC) and the Stock Exchange. Chicago Mercantile (CM).
The document clarifies that the new fund will not invest directly in bitcoins or other digital assets and that it will rather be an ETF, which will provide exposure to BTC investors and allow them to trade stocks that bet on the price of the cryptocurrency.
On the remaining assets, it is established that the ETF can invest them to “provide liquidity, serve as margin or guarantee the Fund’s investments in Bitcoin futures”. Those investments, they specify, would go towards US Treasuries, Commercial Paper, Mortgage-Backed Securities, municipal debt securities, among others.
The new ETF is classified as a “non-diversified fund” according to the Investment Companies Act 1940, and therefore, “you can invest a greater percentage of your assets in a particular issuer.”
In the same way, they take the opportunity to warn of the volatility of the BTC and the risk that the value of the investments of the new ETF decrease rapidly, “even down to zero”.
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