$ProShares Bitcoin Strategy ETF(BITO)$The firstbitcoin linked ETF to allow investors to gain exposure to bitcoin returns. 

But… this fund does not invest in bitcoin directly.. it invest in bitcoin futures contracts.. Hummm.. so what is bitcoin futures contract?

According to the ETF prospectus.. it invest in cash settled, front-month bitcoin futures. Front-month bitcoin futures contracts are contracts that are near maturity. So.. on maturity, the contracts are settled in cash.. either profit or loss depending on the contract price vs the bitcoin price..

The fund also invest in money market instruments such as US treasury bills and repurchase agreements of a year or less to park their excess cash.They also engage in reverse repurchase agreement or borrowing to use the proceeds to invest.

So… this fund does not track the spot price of bitcoin.. and it does not seem to invest in other altcoins.. 

For investors who want exposure to multiple crypto currencies in general and want direct exposureto crypto currency, this ETF does not seem to fulfil the objective.. 

However, as with all investments, do your own research before jumping in.. 

@Tiger Stars