BITO - BITO: Why Bother?
2024-02-12 06:44:24 ET
Summary
- When it launched, ProShares Bitcoin Strategy ETF created a unique way for the public to get involved with Bitcoin, using a novel underlying futures strategy to gain exposure in a regulated context.
- The Fund has underperformed Bitcoin due to distributions and contract rolling costs and charges a high annual fee of 0.95%.
- On the other hand, Spot Bitcoin ETFs offer lower expenses, less tracking error, and better tax efficiency, rendering BITO an inferior choice for most investors.
- We rate BITO a 'Sell' on tracking concerns and a high expense structure and think most would be better served by the new crop of ETFs recently approved by the SEC.
Launched in October of 2021, the ProShares Bitcoin Strategy ETF ( BITO ) has the unique claim of being the first-ever publicly-listed ETF with focused exposure to Bitcoin.
With a novel approach that uses CME Group ( CME ) Bitcoin Futures as the underlying instrument, the ETF began trading to tremendous fanfare in late 2021, near the top of the previous crypto cycle....
BITO: Why Bother?