Wayneqq
2021-10-21

$ProShares Bitcoin Strategy ETF(BITO)$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

免责声明：上述内容仅代表发帖人个人观点，不构成本平台的任何投资建议。

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评论（175）

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  • Venus_M
    ·2021-10-21
    knowing this,  I will stay away for sure [鬼脸]  I am only into the real thing
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    • Wayneqq: 
      Yeah.. i am a bit disappointed also.. i guess the SEC will not allow direct investment into cryptocurrencies.. so they have no choice
      2021-10-21
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    • Wayneqq回复Venus_M: 
      [Strong]
      2021-10-21
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    • Venus_M回复Wayneqq: 
      thanks for alert.  that's why I always believe in buying the real thing.   only those who did their due diligence will know what to avoid
      2021-10-21
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  • jas68
    ·2021-10-24
    worry as Bitcoin is at record high level already.
    is there a reverse ETF?
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    • Wayneqq: 
      Not that i am aware of
      2021-10-24
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  • HengHuat
    ·2021-10-23
    so it is likely to see more of such bitcoin based ETF
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    • Wayneqq: 
      Yes
      2021-10-23
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  • Dalang
    ·2021-10-22
    volatile...,ETF BITO vs Bitcoin..?which one more risky?
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    • Wayneqq: 
      Both are equally risky
      2021-10-23
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  • 听海观涛
    ·2021-10-23
    分析的很到位
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  • 蓝天与白天
    ·2021-10-22
    特斯拉涨了
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  • 真丶短线复利
    ·2021-10-22
    嗯 都是一个样
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  • joew88
    ·2021-10-21
    More traditional money pour into crypto when the availability of these sort of etf..
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  • Venus_M
    ·2021-10-21
    thanks for the info! 
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  • 彼岸之舟
    ·2021-10-23
    急急急
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  • Sentosa
    ·2021-10-23
    预约
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  • 达达里奥
    ·2021-10-23
    谢谢
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