The ProShares Bitcoin Strategy ETF, the first Bitcoin Exchange-Traded Fund (ETF) to trade on a major US exchange, is currently leading the global Bitcoin ETFs with 35,970 BTC, accounting for 16.6% of all Bitcoin ETFs, according to a report by CoinGecko published on Thursday. The fund, which operates under the ticker BITO, was originally launched in 2021.
InvestingPro data reveals that BITO has an adjusted market cap of $851.31 million and a notable dividend yield of 6.52%. This aligns with one of the InvestingPro tips that BITO pays a significant dividend to shareholders. The ex-date of the last dividend was recorded as October 2, 2023. However, it’s worth noting that BITO’s valuation implies a poor free cash flow yield and it suffers from weak gross profit margins, as per InvestingPro Tips. More insights on BITO can be found at InvestingPro.
Following closely is the Purpose Bitcoin ETF, which ranks second with over 25,000 BTC. This fund trades on the Toronto Stock Exchange and holds over $1.1 billion in assets under management. It was also launched in February 2021, marking its position as North America’s first spot Bitcoin ETF.
South America’s first Bitcoin ETF, QBTC11, holds a total of 727 BTC. This fund was introduced to the market in June 2021. Additionally, Bermuda has made an entry into the list of top Bitcoin ETFs.
In the Bitcoin ETF market, regulatory challenges from the U.S. Securities and Exchange Commission (SEC) have posed significant hurdles. The SEC has rejected applications for spot Bitcoin ETFs citing liquidity, custody, and price manipulation concerns, which have subsequently slowed growth in this sector.
Meanwhile, Grayscale’s substantial Bitcoin ETP holdings of over 625,645 BTC suggest a potential shift towards a US-based Bitcoin ETF in the near future. Despite the challenges, BITO has shown resilience with a 1-year price total return of 36.68%, and a year-to-date price total return of 54.24%, according to InvestingPro data.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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