BITO Set to Close as Bitcoin ETF Inflows Dwindle Amid AI Frenzy
The first U.S.-listed spot bitcoin ETF, ProShares Bitcoin Strategy ETF (BITO), is set to close its doors after a significant decline in investor inflows. The fund's assets under management have dwindled from a high of $1 billion to around $140 million, according to a recent report.
The closure comes as investors are increasingly turning their attention towards alternative investment strategies, including those focused on artificial intelligence (AI). BITO has struggled to attract and retain investors in the face of growing competition from other exchange-traded funds (ETFs) with more niche focuses.
BITO's parent company, ProShares, has stated that it will continue to support the fund until its closure. No specific date for the shutdown was provided.