Bitcoin's price is expected to peak around October 2025, driven by the latest halving event in April 2024, continuing its bull market trend. ProShares Bitcoin ETF offers a strategic way to speculate on Bitcoin, aiming to benefit from Bitcoin's price through an actively managed approach. BITO's attractive 57% estimated annual yield from monthly distributions enhances its appeal.
Bitcoin prices surge again ahead of Trump's inauguration day.
BITO: On-Chain Signals And Seasonality Say Bitcoin's Rally Isn't Over
A few years ago, a relatively under-the-radar commodity — uranium — came into the spotlight. Compared to many other commodities, uranium is in its early stages in the ETF world.
Bitcoin's post-election rally is consolidating, with positive drivers still present and potential for further gains as Trump's crypto-friendly administration forms. The ProShares Bitcoin Strategy ETF is outdated and underperforming due to its reliance on futures contracts. New Bitcoin ETFs launched in 2024 offer superior returns and lower expenses, making them preferable for buy-and-hold investors.
Bitcoin Strategy ETF offers exposure to Bitcoin with reduced volatility by tracking CME listed futures, avoiding direct custody and regulation risks. The ETF provides a substantial 50.88% yield, combining growth potential with stability through significant cash reserves in Treasury bills. Since its October 2021 launch, the ETF has grown assets under management to over $2.6 billion, a 120% increase in the past year.
Prefer holding Bitcoin directly or via competitors' ETFs over ProShares Bitcoin ETF due to lower fees and better tracking of Bitcoin prices. Bullish on Bitcoin with a price target of $125k by March, driven by strong ETF inflows, low exchange reserves, and potential regulatory support. Mt. Gox repayments and MicroStrategy's aggressive buying strategy are unlikely to disrupt the current bullish trend significantly.
The S&P 500's return this year looks impressive — until you look at bitcoin's 145% gain above $100,000. And investors turn to bitcoin ETFs.
A Georgia-based brokerage has settled allegations that it and its president developed and sold a trading strategy that they did not understand and that caused near-total losses for 350 clients. The product in question was the Daily Inverse VIX Short-Term Exchange-Traded Note (XIV). Exchange-Traded Notes (ETNs) are essentially structured products that are issued as senior debt notes and trade as stocks. They have credit risk linked to the issuer which may or may not be the note's sponsor. Just because something is popularly called an ETF does not mean it is structured as an ETF. With leveraged ETFs and ETNs that use futures and complex structured notes, knowing exactly what is being traded is essential.
ProShares Bitcoin Strategy ETF (BITO) has gained 36% since early October, driven mostly by the election, while lower interest rates have also benefited miners and stabilized Bitcoin prices. Post-April halving, miners face profitability challenges, leading to hardware upgrades and strategic Bitcoin sales to maintain operations and cover costs. These costs and digital asset prices trading lower than break-even costs has prompted miners to sell more of their holdings to ensure liquidity.
Today's Big 3 dives into the technical trends of finances. @Theotrade's Don Kaufman discusses the bearish and bullish positions on the ProShares Bitcoin ETF (BITO), the iShares 20+ Year Treasury Bond ETF (TLT), and Goldman Sachs (GS).
Bitcoin's current bull run is driven by momentum, making it a high beta investment, but traditional valuation methods are challenging. BITO ETF tracks bitcoin via CME futures, but its structure leads to high dividends and lagging performance compared to spot bitcoin ETFs like IBIT. BITO's high monthly dividend impacts price performance, making it better suited for short-term options rather than long-term LEAPs.