Quick Take Eric Balchunas, Bloomberg’s Senior ETF Analyst, recently highlighted a significant achievement for the Bitcoin Futures ETF, $BITO. In its most substantial weekly inflow in the past year, the ETF’s assets have surpassed the $1 billion mark once again. On Friday alone, it traded shares worth half a billion dollars, an impressive feat it had only accomplished about five times prior to this. Established in November 2021, at the height of the Bitcoin bull cycle, $BITO gives investors a pathway to gain exposure to Bitcoin through an ETF. However, its current performance shows a downturn, with a significant -52% drop. Investors who initially injected $10,000 into $BITO would now possess approximately $4,800, underscoring the ETF’s challenging market conditions. Despite being a futures ETF and not a spot ETF, Balchunas pointed out that $BITO closely shadows the spot price of Bitcoin. Balchunas suggested a considerably lower impact than anticipated, stating, “It’s lagged spot by 1.05% annually, but its fee is 0.95%, leaving only 10 basis points of roll (extra) costs, which is basically a rounding error. Many anticipated a discrepancy of over 5% a year.” BITO: (Source: Bloomberg) BITO performance: (Source: Proshares.com) Bito: (Source: Bloomberg)

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