An ETF called the ProShares Bitcoin ETF has reached a certain amount of assets under management (AUM), and this has given CME a new lease on life.
For the first time in history, the ProShares Bitcoin ETF AUM hit a new record high of 26.7k BTC.
Arcane Research’s weekly report says that this week, the ProShares BITO ETF set a new all-time high for its AUM. This is around 26.7k BTC, which is about the same as last week.
It’s called a “exchange traded fund,” or a “ETF.” This is a type of investment vehicle that tracks the price of another asset or commodity, like stocks or bonds.
Because an ETF lets people bet on the price of a certain thing, they don’t have to own the thing they are betting on. There may be a few reasons why someone would rather invest this way than just buy Bitcoin.
For one thing, some investors may not be very familiar with how cryptocurrency works and don’t want to deal with exchanges and wallets that they have to figure out on their own. ETFs, on the other hand, would be a lot more familiar ground for a lot of people.
People can bet on prices in either direction, which is another reason. During a spot investment, you can only make money if the price of Bitcoin goes up.
You can see the trend in the ProShares BITO AUM here, the first Bitcoin ETF to get a thumbs-up.
People who own bitcoins as part of a fund saw their value fall in December when the price of bitcoins also fell.
Following a low point in January, the ETF’s AUM has started to move up again.
A new record was set this week. March futures on CME have been added to the ETF’s portfolio. The ETF’s recent strong inflows may have changed the premiums for the first month of the year. This has given the derivatives exchange a new lease on life. This has helped it grow.
At the time of this writing, the price of Bitcoin is around $42.6k. In the last seven days, the price has dropped 3%. Over the last month, the value of the crypto has dropped by 1%, but it hasn’t gone down much.
BTC’s price changed over the last five days in the chart below.
When the price of Bitcoin rose above $44k a few days ago, it fell back below $43k today.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.