- ProShares’ bitcoin futures fund has dropped $1.2 billion after the debut of last year’s blockbuster, the FT reported.
- The Bitcoin Strategy ETF had inflows of $1.8 billion, but only $614 million in AUM, according to Morningstar.
- Digital assets have plummeted in what many investors call 2022, the “Crypto Winter.”
The first listed bitcoin futures fund has punched a record billions of dollars into investors’ pockets in its first year of trading. financial times Reported.
proshares Bitcoin Strategy ETF broke the record after Listed on the New York Stock Exchange as BITO in October last year. In just two days, he had $1.1 billion inflows, making him the fastest ETF to exceed $1 billion in assets under management.
$1.8 billion in inflows over the next 12 months, the FT reported, citing data from Morningstar Direct.
But as of Wednesday, AUM stood at just $614 million, just short of a loss for investors, or $1.2 billion, the research firm found. The loss in its debut year was greater than any other ETF in history, it said.
At the same time, the fund’s stock price fell 70%, ranking last among ETF performers, as uncertainty over the fate of the Federal Reserve’s rate hikes dampened investor appetite for riskier assets.
ProShares funds debuted on the stock market at a time when investor interest in cryptocurrencies was on the rise. Bitcoin It hit a then-high $67,000 in the week it was released.
Since then, digital assets have been “crypto winter” by analysts and investors.
Bitcoin, the top cryptocurrency by market value, is trading at $20,536 on Wednesday, down nearly 70% from its $66,002 level when BITO went public, according to CoinMarketCap data.
Other Bitcoin futures funds have done similarly.Valkyrie Bitcoin Strategy ETF Global X has fallen nearly 65% since debuting in November while going public Blockchain and Bitcoin Strategy ETF It fell 75% over the same timeframe.
ETFs (or exchange-traded funds) offer investors exposure to a particular asset class, sector, or theme.