ETF Trends | December 02, 2021
ProShares’ Simeon Hyman joins ETF Trends’ Lara Crigger to discuss the ProShares Bitcoin ETF (BITO), dispel any myths or misconceptions about the bitcoin futures market, and provide an update on the fund. Hyman says BITO “is designed to provide investment results that correspond to the performance of bitcoin” by investing in bitcoin futures contracts and “not investing in spot bitcoin directly.” The fund, which launched in October, is the first bitcoin-linked ETF and the fastest ETF to reach $1 billion in AUM.
There is no guarantee any ProShares ETF will achieve its investment objective. This ETF may not be suitable for all investors.
Investing involves risk, including the possible loss of principal. Bitcoin and bitcoin futures are a relatively new asset class and the market for bitcoin is subject to rapid changes and uncertainty. Bitcoin and bitcoin futures are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of an investment in the ETF could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.
This ETF is actively managed and invests in bitcoin futures contracts. The ETF does not invest directly in or hold bitcoin. The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund's performance and its ability to achieve its investment objective.
Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin and bitcoin futures are subject to rapid price swings, including as a result of actions and statements by influencers and the media.
This ETF is non-diversified and concentrates its investments. Non-diversified and narrowly focused investments typically exhibit higher volatility.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in the ETF’s summary and full prospectuses. Read them carefully before investing.
Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns.
“Spot” price refers to the price of bitcoin that can be purchased immediately.
ProShares ETFs (ProShares Trust and ProShares Trust II) are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.