ProShares Bitcoin ETF (BITO)
ARCA ARCA Primary 
XBER 
Chart Of The Day: Tracking The Trump Trades
Consensus thinking is that a Trump win would be positive for gold, Bitcoin, the dollar, and financial stocks, but negative for Treasury bonds and oil prices. USO lost about 5% of its value in the last month, while BITO gained more than 7%.
The Big 3: RH, BITO, TSLA
Tesla (TSLA) reports earnings after the closing bell, and @Theotrade's Don Kaufman joins Rick Ducat and Caroline Woods to break down the technical trends. They also dive into home furnishing and crypto by examining RH (RH) and the ProShares Bitcoin ETF (BITO).
A Look At My 10 ETF Holdings
My investment strategy focuses on generating income from dividends and distributions, supplemented by writing covered calls and cash-secured puts. More broadly, I hold a mix of high-yield and dividend-growth investments, with the approach of both receiving high cash flow and seeing it grow over time as well. With my ETF approach, there are funds that fit both of these categories, some really "boring" names and then those that get more interesting in the "reaching-for-yield" category.
BITO: Downtrend May Finally Be Ending
BITO offers exposure to Bitcoin through futures contracts, providing ease of access and significant monthly distributions despite tracking errors and high volatility. BITO is down significantly since my last article, but I remain bullish, albeit for different reasons. Technical indicators suggest a potential end to BITO's downtrend, with bullish seasonality from October to February historically supporting Bitcoin price increases.
BITO: Rate Cuts Are Beneficial, Plus High Income (Rating Upgrade)
ProShares Bitcoin Strategy ETF has faced about a 13% loss since July, but rate cuts and Chinese stimulus have triggered an upside. Loosening of monetary policy could help Bitcoin miners adapt faster to the post-halving landscape, which may stabilize the hash rate and profitability. Lower interest rates can also reduce miners' operating expenses, encouraging them to hold rather than sell Bitcoin, thus supporting higher asset prices.
Bitcoin breaks above $65k, stocks and gold record fresh ATHs as easy money policies juice markets
Jordan Finneseth is a Crypto Market Reporter for Kitco Crypto. Coming from a background in Psychology and Human Behavior, he began to focus his attention on the cryptocurrency space in early 2017 after noticing the rapid growth of this emerging market.
BITO's Underperformance Is Likely To Continue
We think BITO is inferior to other spot-based BTC products due to the fund's high expense ratio and futures-based approach to getting crypto exposure. High transaction costs, liquidity constraints, and a uniquely inefficient 'rolling' mechanic should cause structural underperformance vs. the underlying going forward. Despite some niche use cases, BITO's structure results in substantial performance drag making it a sub-optimal long-term investment.
BITO: Macro Risks Amid Bearish Bitcoin Seasonal Trends (Rating Downgrade)
I have a hold rating on the ProShares Bitcoin Strategy ETF due to mixed macro risks and bearish seasonality in the near term. The Fed's anticipated rate cuts could benefit Bitcoin, but a stronger US dollar and historical seasonal weakness in August and September pose risks. BITO offers exposure to Bitcoin futures, not directly to Bitcoin, and has returned 35.3% year-to-date compared to spot Bitcoin's 43.3% gain.
BITO: 2 Potential Catalysts To Look Forward To
ProShares Bitcoin Strategy ETF does not directly own Bitcoin, but instead holds exposure to Bitcoin futures. Through these Bitcoin futures, BITO generates income and offers a massive 44% dividend yield. Key catalysts for Bitcoin's future growth include increased retail and institutional investor exposure via Bitcoin spot ETFs and the recent halving event reducing new Bitcoin supply.
BITO: Expect Continued Volatility As Miners Consolidate
The price of Bitcoin seems to be going up, making investors feel that they may be missing an opportunity to invest, especially with BITO which pays a substantial amount of dividends. However, the price action shows that BTC's price seems more range-bound while miners, which are a key component of the ecosystem, continue to consolidate in the post-halving landscape. Also, more than six months after the emergence of several spot ETFs, BITO seems to be standing its ground when looking at total returns.
BITO: Bitcoin's Role In The 2024 Election
In May, I speculated that larger investors have been waiting for regulatory clarity to invest in Bitcoin and other digital assets. With the recent approval of spot Ethereum ETFs, that clarity is starting to take form. Former President Trump has already taken a pro-crypto stance publicly and will speak at the Bitcoin 2024 conference in Nashville.
BITO: Bitcoin Bear Market Begins As Excess Liquidity Dries Up
BITO has delivered positive returns since I last covered it, but it has faced significant losses in recent weeks, as Bitcoin appears to enter a bear market. Assuming Bitcoin lacks fundamental use value as a fiat alternative, its returns appear driven by excess liquidity in the financial market. COVID-era stimulus created immense excess financial market liquidity, most of which has dried up, causing speculative assets like Bitcoin to stagnate.
