BITO - BITO ETF: Uptrend Likely To Continue Till Bitcoin Halving Amid Volatility

2024-03-06 10:04:32 ET

Summary

• ProShares Bitcoin Strategy ETF has seen a 34% increase in share price since December, driven by the surge in Bitcoin's price.
• The advent of spot Bitcoin ETFs has increased demand for the cryptocurrency and also provides investors with more choices than investing in BITO, but it has continued to attract inflows.
• At the same time, Bitcoin halving scheduled for next month is resulting in lower supply as more miners HODL their produce.
• Therefore, it is high demand-low supply dynamics which is driving up prices, but, it is difficult to know how the ecosystem will react after halving.
• Also, a comparison with gold is useful, but cannot be replicated for Bitcoin as these are two different asset classes, each with its own particularity.

Since the last time I covered ProShares Bitcoin Strategy ETF ( BITO ) in the very bullish thesis entitled " Ideal Demand-Supply Dynamics Amid Crypto Resiliency" in early December, its share price has appreciated by over 34% to trade at around $31. The upside was driven by the surge in the price of Bitcoin ( BTC-USD ) which was trading at around $68K at the time of writing....

For further details see: