ProShares Bitcoin Strategy ETF BITO (BITO.US) is an exchange-traded fund (ETF) that seeks to track the performance of the Bitcoin futures market. With a market capitalization of $1.15 billion as of July 31, 2023, it is managed by ProShares, an investment management company. Launched in October 2021, it became the first Bitcoin futures-based ETF in the United States.
The fund allows investors to gain exposure to Bitcoin without directly owning the cryptocurrency, making it an attractive option for those looking to invest in the digital asset class. BITO's share price correlates with movements in the Bitcoin futures market, providing a regulated and accessible avenue for investors to participate in Bitcoin's price movements while offering liquidity and transparency.
As a trader or investor, keeping an eye on the price history of any asset is critically important.
Since its launch in October 2021, the ETF has experienced some notable market activity, including its highest and lowest price points. Within a few weeks of its launch, it had become one of the top ETFs in terms of trading volume, reflecting the growing interest in cryptocurrency. The highest share price reached by BITO was $44.29 in November 2021, while the lowest share price reached was $9.48 in November 2022.
When it comes to trading strategies for BITO, there are several ways traders may analyze the ETF's price movements. One popular strategy is technical analysis, which involves using trading tools and indicators to track trends and identify patterns. Technical indicators such as moving averages, Bollinger Bands, and support and resistance may help traders determine when to buy or sell BITO based on its price movements and momentum.
While, BITO has garnered attention from many, traders should keep in mind that there are other competitors in the market worth considering. They include:
- ProShares Short Bitcoin ETF (BITI) - This ETF inverses the performance of Bitcoin futures and aims to benefit from falling Bitcoin prices.
- VanEck Bitcoin Strategy ETF (XBTF) - It seeks to track the performance of the MVIS Cryptocompare Bitcoin Benchmark Rate, which reflects the overall performance of the Bitcoin market. This ETF is managed by VanEck, a well-established investment management firm.
- Valkyrie Bitcoin Strategy ETF (BTF) - It tracks the performance of the price of Bitcoin and invests in Bitcoin futures contracts. One advantage of this ETF is its lower expense ratio, which makes it more cost-effective for investors. Additionally, it is actively managed, which provides the fund's management team with more flexibility and discretion.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.