ProShares, a leading provider of ETFs, is set to launch the first U.S. bitcoin-linked ETF (BITO) on October 19, 2021. This groundbreaking offering will provide investors with convenient exposure to bitcoin through traditional brokerage accounts, eliminating the complexities of direct cryptocurrency ownership.
Key Features of BITO
- Convenient Access: Trade like a stock via brokerage accounts.
- Liquidity & Tradability: No need for crypto exchanges or wallets.
- Futures-Based Strategy: Invests in bitcoin futures, not direct bitcoin.
👉 Why BITO is a game-changer for crypto investors
Why BITO Matters
Michael L. Sapir, CEO of ProShares, highlights:
"BITO opens bitcoin exposure to investors wary of crypto exchanges’ security risks or technical hurdles. It democratizes access akin to how gold ETFs revolutionized commodity investing."
Milestones in ETF History
- 1993: First equity ETF.
- 2002: First bond ETF.
- 2004: First gold ETF.
- 2021: First crypto-linked ETF.
Risks & Considerations
BITO involves unique risks:
- Volatility: Bitcoin prices can swing dramatically.
- Futures Roll Costs: May impact returns.
- Regulatory Uncertainty: Crypto markets are less regulated.
Investors should review the prospectus and assess risk tolerance.
FAQs
Q: Does BITO hold actual bitcoin?
A: No. It invests in bitcoin futures contracts.
Q: How does BITO differ from buying bitcoin directly?
A: It offers ETF convenience but mirrors futures performance, not spot prices.
Q: What are BITO’s margin requirements?
A: Futures trading involves collateral and margin rules that could affect returns.
Q: Is BITO suitable for long-term holders?
A: Active management and futures rolling make it better for tactical exposure.
👉 Explore BITO’s potential for your portfolio
About ProShares
With over $65 billion in assets, ProShares pioneered thematic and geared ETFs. Its affiliate, ProFunds, launched the first bitcoin-linked mutual fund in July 2021.
Disclaimer: Investing involves risks, including total loss. BITO is non-diversified and highly volatile. Consult a financial advisor before investing.
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