BITO - BITO: Wait For End Of Turbulence Before Investing (Rating Downgrade)

2024-06-05 06:54:43 ET

Summary

• ProShares Bitcoin Strategy ETF has underperformed Bitcoin and faces competition from spot ETFs like iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin ETF.
• BITO offers attractive dividend yields of above 20% but, this may come at the expense of price appreciation.
• The fund's holdings show a shift to a longer-term strategy, possibly due to expected pressure on crypto prices from miners adjusting to the halving.
• The ETF may experience further volatility and it is better to wait for the turbulence period to end before investing.

In my last thesis on ProShares Bitcoin Strategy ETF ( BITO ) entitled “ Uptrend Likely To Continue Till Halving Amid Volatility” on March 6, I had a bullish position which materialized, but only to some extent when the share price increased from $30.83 to a peak of $33.65 one week later. However, subsequently, volatility reigned and it is now trading at around $27....

For further details see: