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 ProShares and Grayscale lead a surge of activity in Bitcoin investment products, with analysis confident of implied demand for a Bitcoin spot ETF.
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<div class="cointelegraph">
 <p>Bitcoin (BTC) institutional investment vehicles are seeing a major volume boost as excitement over possible United States regulatory changes takes hold.</p>
 <p>Data from resources including Bloomberg showed Bitcoin exchange-<a rel="noopener noreferrer nofollow" title="trade" href="https://thebittimes.com/tag/trade.html">trade</a>d funds (ETFs) and others nearing record weekly inflows.</p>
 <h2 id="bito-gbtc-trade-2-5-billion">BITO, GBTC trade $2.5 billion&nbsp;</h2>
 <p>Hints that the U.S. might soon allow a Bitcoin spot price-based ETF have not only impacted BTC price action — the surrounding ecosystem has benefitted in kind.</p>
 <p>In addition to exchanges and mining firms, embattled institutional investment options are also seeing a resurgence in demand.</p>
 <p>As noted by Bloomberg senior ETF analyst Eric Balchunas, at least two household names saw “notable” volume in the trading week through Oct. 27.</p>
 <p>Among them was the ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF to get the green light in the U.S. in 2021.</p>
 <p>“$BITO <a rel="noopener noreferrer nofollow" title="trade" href="https://thebittimes.com/tag/trade.html">trade</a>d $1.7b last week, 2nd biggest week since its wild WEEK ONE,” Balchunas wrote in part of X commentary.</p>
 <p>He noted that the stalwart Grayscale Bitcoin Trust (GBTC) fetched $800 million in volume, helping reduce its <a rel="noopener noreferrer nofollow" title="discount" href="https://thebittimes.com/tag/discount.html">discount</a> to the Bitcoin spot <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> to two-year lows.</p>
 <p>“That's $2.5b (top 1% among ETFs) into two less desirable methods (vs spot) for exposure = while we think spot ETFs unlikely to set records on DAY ONE, clearly there's an audience,” the X post concluded.</p>
 <blockquote class="twitter-tweet">
  <p lang="en" dir="ltr">Notable: $BITO <a rel="noopener noreferrer nofollow" title="trade" href="https://thebittimes.com/tag/trade.html">trade</a>d $1.7b last week, 2nd biggest week since its wild WEEK ONE. $GBTC did $800m. That's $2.5b (top 1% among ETFs) into two less desirable methods (vs spot) for exposure = while we think spot ETFs unlikely to set records on DAY ONE, clearly there's an audience pic.twitter.com/6bFYtE0UoR</p>— Eric Balchunas (@EricBalchunas) October 28, 2023
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 <p>Others also picked up on the data, with William Clemente, co-founder of crypto research firm Reflexivity, describing ETF trading as "back in full steam."</p>
 <h2 id="legacy-finance-could-know-something-we-don-t-yet">Legacy finance could "know something we don't yet"</h2>
 <p>As Cointelegraph reported, GBTC has seen a remarkable comeback in recent months, even prior to BTC/USD gaining 15% last week.</p>
 <p><strong><em>Related:&nbsp;US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF</em></strong></p>
 <p>Legal victories on the long road to gaining permission to convert GBTC into a spot ETF provided kindling, and Grayscale’s product now trades with an implied share price, which is just 13.1% below the BTC spot price.</p>
 <p>Per data from monitoring resource CoinGlass, this is the lowest since November 2021, when Bitcoin itself was at all-time highs.</p>
 <p>"The GBTC discount keeps narrowing," popular Bitcoin and altcoin trader Mister Crypto meanwhile responded.</p>
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  "Maybe TradFi knows something we don't know yet..."
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 <figure><img src="https://cdn.thebittimes.com/images/2023/10/29/f6f411ce227d3e9abe3c03d8e751307d.webp">
  <figcaption style="text-align: center;"><em>GBTC premium vs. asset holdings vs. BTC/USD chart (screenshot). Source: CoinGlass</em>
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 </figure>
 <p>Despite this, investment management firm ARK Invest has reduced its GBTC holdings in step with the share <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> gains.</p>
 <p>While ARK itself plans a Bitcoin spot ETF launch, GBTC now accounts for 10.24% of its ARK Next Generation Internet ETF (ARKW) — its first change since November 2022.</p>
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/first-bitcoin-etf-trades-1-5b-as-gbtc-discount-echoes-69k-btc-price-tbt68241.html">https://thebittimes.com/first-bitcoin-etf-trades-1-5b-as-gbtc-discount-echoes-69k-btc-price-tbt68241.html</a></p>

First Bitcoin ETF trades $1.5B as GBTC 'discount' echoes $69K BTC price

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