Bitcoin ETF Trading Volume Plummets 75% Amid Surge in Spot ETFs

The trading volume of the ProShares Bitcoin Strategy ETF (BITO) has plummeted by 75% since the launch of spot ETFs directly investing in cryptocurrency in the U.S. on Jan. 11. Meanwhile, spot ETFs have seen a cumulative trading volume of $14 billion in the first week, surpassing all other ETFs launched in 2023. The shift in focus to spot ETFs is attributed to their ability to provide exposure to bitcoin without the complexities of storing the asset, unlike futures-based ETFs like BITO. Despite the decline in BITO's volume, it is expected to remain an integral part of the bitcoin ETF space as some authorized participants may continue to rely on regulated means of hedging themselves, such as long CME futures or long BITO when creating shares.