A healthy inflow into ProShares Bitcoin ETF over the past couple of weeks has pushed the company’s exposure to BTC to a fresh high.
The fund does not invest directly in physical BTC but seeks to provide capital appreciation primarily through managed exposure to Bitcoin futures contracts. It showed a record of 28,450 BTC that it is managing, which is worth around $1.27B at the present price on March 24. That is compared to around 26,000 BTC last month, data released by ProShares shows.
Intriguingly, the inflows apparently appear in days approaching the ‘rollover’ of the March future contract involving 3,846 BITO during the week that ended on March 25.
Summing it up, a rollover comprises traders that move the futures contract as the expiration nears to an extended date contract. This is to sustain an identical position.
The rolling periods of BITO normally follow up with increased net outflow of Bitcoin. This was noted by Arcane Research through its current report. It also cited the fast-rolling period, an outcome of the uncertainty in the market triggered by the war in Ukraine.
An inflow was also seen on March 21of 225 Bitcoins that entered its coffers as soon as BITO turned in its 437 contracts from March to April. This led to Arcane seeing growth in the institutional response to the fund. The firm reported that the robust outflow to BITO suggests that there is an increase in traditional investment avenues through Bitcoin.
Could Next Month See Bitcoin Touching $50K?
The increase in inflows witnessed in the ProShares BTC ETF was coincidental with a BTC market rally on March 25.
Consequently, BTC climbed an extra 2.5%, touching $45,000, the highest it has reached in the last 3 weeks. The BTC price could touch $50,000 soon according to MinePlex co-founder, Alexander Mamasidikov.
He said that the growth witnessed in the ProShare BTC ETF that touched 28,000 BTC should be sufficient evidence that the active demand backs the demand for an exchange-traded fund linked to Bitcoin.