Bitcoin futures ETF hits $1B AUM in a record-breaking two days

The ProShares Bitcoin Strategy ETF has been trading since this week and has now become the fastest fund to reach $1 Billion in assets under management (AUM).

The launch of the first Bitcoin futures exchange traded fund in the United States, BITO was highly anticipated and has led to many milestones.

Eric Balchunas, a Bloomberg senior ETF analyst, reported that the fund reached a ten figure AUM in just two trading days. BITO easily beat the previous record holder, a fund that was based on gold and had the ticker GLD. It took just two days for the fund to reach the billion-dollar mark in 2004.

He said that it was “poetically appropriate” to refer to Bitcoin’s value properties and to digital gold.

RECORD BREAKER – $BITO assets are up to $1.1b today. This makes it the fastest ETF in 2 days to reach $1b (in just 2 days). It also breaks $GLD’s 18yr record (3 days), which is quite poetic. https://t.co/yGXyfwaogD
— Eric Balchunas (@EricBalchunas) October 20, 2021

Balchunas said, “I’ve never seen anything similar.” “I bet ProShares’s even shocked,” Balchunas said, while retweeting a post from James Seyffart (an analyst at Bloomberg Intelligence), who updated the original chart.

Balchunas stated that there might not be any contracts left for purchase if the volume continues. He was referring to a post from Nate Geraci, President of ETFStore, stating that almost 45% of BITO exposure currently lies in November futures contracts.

“If $BITO continues to inflow at this rate, it won’t be able to purchase futures by the end the month because of pos [position] limitations.”

ProShares also set a record for the largest ever first day of organic volumes, which reached $1 billion on October 19, when it was launched. It has traded over 24 million shares since its launch and more than $2 billion worth of volume since then.

Related: VanEck Bitcoin Strategy ETF to Launch Next Week as Crypto Prices Reach ATHs

Balchunas predicts that Friday will see the launch of the next Bitcoin futures funds. In preparation, the Valkyrie Bitcoin Strategy ETF will launch. It is expected to change its ticker to BTF. The former ticker BTFD was also known as “buy the f*cking Dip” in crypto circles. This may have not gone down well with the SEC.

Although I thought this was going to launch tmrw, it will actually be happening on Friday. Sorry about that. https://t.co/fqaGwjgscO
— Eric Balchunas (@EricBalchunas) October 20, 2021

According to CoinGecko, the momentum has driven Bitcoin prices up to an all-time high $67,276 as of Oct. 20, according to CoinGecko. The asset had slightly retreated to trade around $65,230 at the time of writing.

https://cointelegraph.com/news/bitcoin-futures-etf-hits-1b-aum-in-a-record-breaking-two-days