Proshares BITO ETF’s Bitcoin exposure reaches new ATH

Key Takeaways:

  • Proshares BITO ETF's Bitcoin exposure reached new highs.
  • Meanwhile, BTC prices broke above $43,000 before paring gains.
Proshares BITO ETF's Bitcoin exposure reached new highs. Meanwhile, BTC prices broke above $43,000 before paring gains.
Proshares Bitcoin ETF reached a new ATH in Bitcoin exposure. Image from pixabay

NEW DELHI (CoinChapter.com) — Proshares Bitcoin ETF (BITO), the first U.S. Bitcoin (BTC) linked ETF, crossed a new milestone on Tuesday.

According to data from Arcane Research, the total exposure in Proshares’ BITO ETF climbed to a new all-time high, moving above 28,000 BTC. The uptrend is likely the result of strong inflows over the past two weeks, Arcane noted.

In addition, Arcane also noted that strong inflows into futures-ETF would also help boost Bitcoin prices. However, BITO would roll over its 3,846 March futures contracts in the current week. Rolling periods have often accompanied net outflows in the fund.

Proshares assets under management in BTC. Source: Arcane Research
Proshares assets under management in BTC. Source: Arcane Research

“The strong inflows to BITO suggest that bitcoin appetite through traditional investment vehicles is increasing,” the research firm concluded.

Also Read: Bitcoin ‘death cross’ spells more trouble as BTC risks decline to $30K.

Furthermore, the U.S. fintech firm Acorns announced its decision to offer customers exposure to Bitcoin via the Proshares Bitcoin Strategy ETF. The firm would determine what percentage of a customer’s portfolio would be allocated to the fund based on their investment profiles.

Something like bitcoin or any volatile asset class, it’s fine and sensible to have exposure to it, but it should be through the lens of a balanced portfolio,

Acorns’ chief executive officer, Noah Kerner, said

Meanwhile, Bitcoin prices surged to break above $43,000 for the first time after falling below it on Mar. 3. The prime cryptocurrency took bullish cues from the encouraging macro signs coming out of China as the Chinese government promised to ‘release policies favorable to markets.’

Bitcoin price action over the last seven days. Source: CoinMarketCap.com
Bitcoin price action over the last seven days. Source: CoinMarketCap.com

Additionally, Terra’s decision to back its TerraUSD (UST) stablecoin with BTC and its native token LUNA added fuel to Bitcoin’s rally. Terra co-founder Do Kwon revealed the platform plans to buy $3 billion worth of BTC for the purpose.

Bitcoin Price Charts

Propelled by bullish tailwinds, Bitcoin prices moved above $43,000 for the first time in nearly three weeks. However, bears moved to book profits, leading to BTC’s drop. However, they seem to have control as Bitcoin began Mar. 23 with a sell-off that would likely push prices to immediate support near $41,800.

Also Read: Bitcoin rallies over $41K after Fed raises interest rates — but a BTC selloff appears likely.

Moreover, a sustained sell-off could push prices to a support confluence of BTC’s 20-day EMA (red wave) and 50-day (yellow wave) near $40,700. Finally, Bitcoin has support near $39,500, though bulls would try to arrest the fall before BTC reached $39,500 support.

BTCUSD on the daily chart with RSI. Source: Tradingview.com
BTCUSD on the daily chart with RSI. Source: Tradingview.com

Bitcoin’s relative strength index remains neutral, clocking 55.71 on the daily charts. Conversely, if Bitcoin manages to start a bullish rally, it would first try to flip immediate resistance near its 100-day EMA (purple wave) at $43,500.

After moving and consolidating above immediate resistance, BTC would target resistance from its 200-day EMA (green wave) near $45,000.

Traders believe that $45,000 could be the next target for Bitcoin prices. Additionally, Bitcoin loyalist Michaël van de Poppe believes $42,300 support is crucial for Bitcoin to continue its uptrend.

At the time of writing, BTC was trading at $42,383, down 0.02% on the day.

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ProShares, Proshares BITO ETF’s Bitcoin exposure reaches new ATH

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