Data shows the ProShares Bitcoin ETF has realized a milestone number of assets under management (AUM), and has breathed fresh life into CME in the process.
ProShares Bitcoin ETF AUM Sets New All-Time High Of 26.7k Bitcoin (BTC)
As per the latest weekly report from Arcane Research, the ProShares BITO ETF has set a new all-time high of around 26.7k Bitcoin (BTC) for its AUM this week.
An “exmove traded fund” (or ETF in short) is a type of investment vehicle which tracks the price of another asset or commodity.
With the help of an ETF, users can bet on the price of an asset without actually owning said asset themselves. There may be a couple of reasons why an investor would prefer to invest this way rather than barely buying Bitcoin.
First is which some investors may not be well versed with the workings of the crypto world, and would rather not have to navigate around exprogresses and wallets. ETFs, on the other hand, would be much more familiar territory for many.
The second reason is the ability to bet on the price in either direction. In a spot investment, investors can only earn profit although the price of Bitcoin progresss up.
Now, here is a chart which shows the trend in the ProShares BITO AUM, the Bitcoin ETF which got the first approval:
Looks like the ETF's AUM has captured a new all-time excessive | Source: The Arcane Research Weekly Update - Week 6
As you can see in the atop graph, the Bitcoin denominated under the fund started lowering off in December as the price of the crypto still dwindled.
Yet, after hitting a bottom in the middle of January, the ETF’s AUM has picked up some skywards momentum.
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Now this week, the indicator has set a new all-time excessive. The ETF has added exposure to the March futures on CME, and the recent high inflows may have further impacted the front-month premiums. This has breathed a new life into the derivatives exshift’s growth.
Bitcoin (BTC) Price
At the time of writing, Bitcoin’s price floats around $42.6k, down 3% in the maintain seven days. Over the past month, the crypto has lost 1% in rate.
The below chart shows the trend in the price of Bitcoin (BTC) over the advance five days.
Bitcoin (BTC)'s price seems to have dropped off over the past twenty-four hours | Source: Bitcoin (BTC)USD on TradingView
The price of Bitcoin had one time before also surged up over $44k a couple of days ago, but today the price has slipped back down below the $43k level.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com