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Bitcoin Hits Record High as ProShares ETF Hauls in $570 Million

Bitcoin surpasses $65,000 for the first time as the first bitcoin futures-based U.S. exchange traded fund hauls in more than $570 million in its first day.

Bitcoin continued its ascent on Wednesday, surpassing $65,000 for the first time and touching a new record, as the first bitcoin futures-based U.S. exchange traded fund hauled in more than $570 million of assets in its first day.

Bitcoin recently traded at $65,607.78, up 4.44% from Tuesday and surpassing its previous record high of $64,895 reached this past summer. The digital token fell by some 50% over the summer months, hitting $32,000 in July, but has steadily risen since.

The U.S. Securities and Exchange Commission last week let the clock run out on ProShares’ application to launch an ETFs focused on bitcoin futures, effectively giving it the green light to roll out the first bitcoin futures ETF available to U.S. retail and institutional investors.

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The ProShares Bitcoin Strategy Fund  (BITO) - Get PROSHARES BITCOIN STRATEGY ETF Report, which launched Tuesday on the New York Stock Exchange, had $20 million of seed capital at the start of the day. The fund also saw about $1 billion of trading volume on the first day, making it the second-most heavily traded new ETF on record, according to Bloomberg.

The fund’s price rose to $41.94 at the close of stock-market trading, up 4.9% from the initial $40 net asset value. At last check, the fund was up 0.48% at $42.80. 

Other fund managers who reportedly have applied to launch bitcoin ETFs in the U.S. including VanEck Bitcoin Trust, Invesco, Valkyrie and Galaxy Digital Funds could find themselves in similar position in the coming days and weeks, leading to additional ETF launches and in turn wider retail and institutional investment in digital assets.