ProShares Bitcoin Strategy ETF

ProShares Bitcoin Strategy ETF is an exchange-traded fund incorporated in the USA. The ETF seeks capital appreciation. There can be no assurance that the Fund will achieve its investment objective. The Fund does not invest directly in bitcoin. The Fund seeks to provide capital appreciation primarily through actively managed exposure to bitcoin futures contracts.

BITO actively manages a portfolio of front-month CME bitcoin futures.

The ProShares Bitcoin Strategy ETF ($BITO) is the first bitcoin futures ETF to trade on a major U.S. exchange.

Since it's a futures ETF, the fund holds futures contracts for bitcoin assets but does not hold bitcoin itself. Futures-based ETFs can be riskier than traditional ETFs, per the SEC.

Bitcoin ETFs allow investors to invest in the future of this cryptocurrency without investing directly. Proponents of bitcoin ETFs say that this broadens access to bitcoin to larger groups of investors who may not want to invest in bitcoin directly. 

One important consideration is that ETFs often come with management fees, and the approved Bitcoin Strategy ETF is no different, with a listed management fee of 0.95%.

The fact that the first bitcoin ETF is a futures ETF is important. There is a cost associated with “rolling” futures contracts and this means that a bitcoin futures ETF will not perfectly track the spot price of bitcoin.

Individual investors can already invest in bitcoin and as many as 13% of Americans have invested in crypto so far in 2021 according to one University of Chicago study.

In order for an ETF to become available to investors, it must be approved by the Securities and Exchange Commission (SEC) and registered under the Investment Company Act of 1940.

BITO saw about $1 billion of trading volume on its first day of trading, making it the second-most heavily traded ETF debut on record.

More than 24 million shares changed hands during its first trading day, according to data compiled by Bloomberg.

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The advent of the exchange-traded fund (ETF) has allowed for creative investments, leading to a rise in thematic funds and also opened the door for cryptocurrencies.

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Bitcoin's correlation to the stock market could finally be dissolving as 2022 comes to a close. The leading cryptocurrency has been experiencing less volatility these days compared to the fluctuations of the stock market.

Bitcoin Is Showing Signs of Less Stock Market Correlation

Monetary policy tightening by the U.S. Federal Reserve has been pushing the greenback higher, but the dollar's day in the sun could be limited. Alternative assets like bitcoin may be pushing higher as inflationary pressures could be subsiding.

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Regulatory measures for the cryptocurrency market may seem like a detriment to an industry that's been operating as a decentralized network, but they could also be a catalyst that could bring more investors to the space.

Regulatory Measures Could Provide Catalyst for Bitcoin's Price

With interest rates rising in the U.S. the way they have been thanks to a hawkish Federal Reserve, it's difficult to oust the almighty greenback. However, bitcoin is still outperforming certain currencies around the globe even with the recent pullback.

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Bitcoin's use as a medium of exchange is continuously on the move higher with certain countries adopting it as legal tender. The proliferation of its use could also see it take over international transactions on the Society for Worldwide Interbank Financial Telecommunications (SWIFT) network.

Bitcoin's Use in International Transactions Should Continue Increasing

Bitcoin continued to match the moves of the broader stock market as its price faltered amid a hot inflation report that sent the Dow Jones Industrial Average tumbling as much as 1,200 points during Tuesday's trading session. “U.S. inflation decelerated in August, but remained higher than what economists had expected, a sign that the U.S.

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Exchange-traded funds focused on bitcoin were sliding sharply around midday Tuesday in a broad stock-market slump sparked by an inflation reading for August that was hotter than forecast. The ProShares Bitcoin Strategy ETF BITO, -7.73% was down more than 7% around midday, while the VanEck Bitcoin Strategy ETF XBTF, -7.76% and Valkyrie Bitcoin Strategy ETF BTF, -7.70% were also sliding more than 7%, FactSet data show, at last check.

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The summer rally in stocks and bonds has been fizzling out as recession fears start to permeate through the capital markets. Bitcoin has been following traditional assets as of late and has fallen below $20,000 after a summer rally of its own above $25,000.

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Timing the market is near impossible, especially regarding the volatile crypto markets (particularly this year). However, a seasonal buying opportunity could allow prospective Bitcoin investors to get in on an area of value.

Recent Bitcoin Weakness Could Provide Seasonal Buying Opportunity

VettaFi writer Elle Caruso recently sat down with Simeon Hyman, global investment strategist at ProShares, to discuss bitcoin futures ETFs and the state of the ProShares Bitcoin Strategy ETF (BITO). The excitement was palpable when BITO came to market last October, allowing U.S.

Simeon Hyman on BITO and the Bitcoin Futures Market

Bitcoin recently touched past the $25,000 mark in a recent rally, but given the way the leading cryptocurrency has been behaving as of late, investors have to wonder whether it's a flash rally or something more sustainable. Recent short-term buying activity could point to potential long-term support.

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After heavy sell-offs to start the first half of 2022, bitcoin's price has been relatively stable, but can it gain momentum to reach $773,000? One analyst thinks that a confluence of factors could propel the leading cryptocurrency to such levels.

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Certain investors rebuke the addition of cryptocurrencies in their portfolios, dismissing digital assets as too great of a risk, especially without regulatory oversight. That could be changing with the introduction of a pair of bills by the U.S. Senate.

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Detractors of bitcoin-related exchange traded funds (ETFs) like the ProShares Bitcoin ETF (BITO) are quick to label the cost of getting exposure to the leading cryptocurrency as expensive, but an expense ratio doesn't tell the full story. The fund's lower premium in bitcoin futures exposure highlights the maturation process of the market.

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With bitcoin prices following the stock market as of late, it's a reminder that the leading cryptocurrency is not immune to recession risks despite its classification as an alternative asset. In a July 2022 World Economic Outlook, the International Monetary Fund (IMF) forecasted a slowdown in global growth.

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A new breed of ETF debuted on the U.S. markets earlier this month when AXS Investments launched eight funds offering daily leveraged bull and bear bets on the direction of single companies.

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While leading cryptocurrency bitcoin could be rallying in the interim, miners who are feeling the pain of the first half sell-off are already licking their wounds. In the case of some miners, they're having to unload bitcoin in the current crypto market environment.

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The latest crypto sell-off may have shaved off a considerable number of retail investors, but institutional investors still have curiosity in the long-term potential of the crypto market. Venture capital firms, in particular, are harboring more interest in the leading cryptocurrency, bitcoin.

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Grayscale Investments followed through on its promise to sue the U.S. Securities and Exchange Commission if regulators denied its bids to convert the $13 billion Grayscale Bitcoin Trust into an ETF or allow it to launch a standalone fund to hold bitcoin directly. In a letter to investors, the firm said the SEC is violating [.

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These funds have fallen most in the first half of 2022.

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After a spate of sell-offs in the first half of 2022, technical analysis may be showing that bitcoin is ready for another rally. Whether it can sustain one this year is anybody's guess, but the leading cryptocurrency could finally be poised for a long-term uptrend.

Technical Charts Show Bitcoin Poised for Another Rally

BITI joins BITO within the ProShares' bitcoin futures ETF lineup.

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ProShares has publicly launched the first short bitcoin-linked ETF in the United States. The ProShares Short Bitcoin Strategy ETF (NYSE Arca: BITI) provides a way for investors to potentially profit from a decline in the price of bitcoin or hedge their cryptocurrency exposure with the convenience of an ETF.

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The recent sell-off in Bitcoin, which took it below $21,000 at one point, is certainly spooking the majority of investors — particularly those who are new to digital assets. Some industry players, however, are undeterred by the recent plunge across the board in cryptocurrency prices.

News for ProShares Bitcoin Strategy ETF ETF (BITO)