BITO - BITO: Speculation Likely To Continue

2024-03-15 03:53:52 ET

Summary

• ProShares Bitcoin Strategy ETF charges a higher fee compared to other ETFs and has a varying correlation with Bitcoin price over shorter timeframes.
• The availability of options on the ETF is unique within the traditional financial system and can be used to express bullish beliefs.
• The upcoming Bitcoin halving and the introduction of Bitcoin ETFs are tightening the supply of Bitcoin and potentially putting upward pressure on its price.

The ProShares Bitcoin Strategy ETF ( BITO ) is a vehicle used to go long Bitcoin that is based on futures. It has been around a lot longer than the spot ETFs that were launched this year. The downside is that it charges around 0.95% which is significantly above what the new swath of ETFs is charging. The correlation of the fund with the Bitcoin price is generally very high. But if you zoom in and look at correlation over shorter timeframes, it varies quite a bit more....

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