ETFs

BITO ETF: Where to buy and who can buy

TL; DR Breakdown

  • BITO ETF for tracking prices of futures contracts.
  • The BITO ETF is attracting brokers that support trading this fund.

There’s a new Bitcoin fund designed to track the price of futures contracts on the Chicago Mercantile Exchange. The ProShares BITO ETF will expose investors to this crypto, which recently skyrocketed to reach an all-time high near $65K due to anticipation for BITO’s launch. Bitcoin is becoming more mainstream with the upcoming launch of ProShares Bitcoin Fund on October 19. 

ProShare Bitcoin ETF launch at The Opening Bell New York Stock Exchange

The Exchange-Traded Fund (ETF) will be available on NYSE after its debut. The BITO ETF has already attracted interest from brokers that support trading this fund at their platforms. They include Robinhood, a popular platform specifically tailored towards retail investors. Also, SoFi and Webull help this kind of trade.

Jamie Dimon, the CEO of JPMorgan Chase, might call Bitcoin “worthless” or a fraud. Yet, investors continue to seek exposure in this cryptocurrency, and ProShare’s new strategy fund is responding by coming out with an ETF—the Bitcoin Strategy ETF (BITO).

Who Should Buy BITO ETF

With the BITO ETF, ProShares has created a way for investors to gain exposure without holding Bitcoin. Many places where this crypto trades have no regulations, thus posing challenges on regulated markets.

Bitcoin investors are in luck. There are now many ways to access regulated channels, with Valkyrie and Invesco leading the pack. Also on their way is VanEck ETFs, which will please those who can’t invest directly into crypto because of regulatory restrictions.

Investing in BITO ETF sounds like a promising way to enter the crypto space, but some downsides and limitations exist.

The ETF charges the annual management fee, which might scare small-scale investors. As a result, some clients might choose to head to Coinbase to make direct purchases.

Best Places to Buy BITO

eToro

eToro is a leading multi-asset trading platform that offers some of its industry’s lowest commission and fee rates. Social copy trading features make it great for beginners who want to get started quickly. At the same time, advanced traders with higher account balances can still find competitive pricing on eToro‘s as well.

Webull

A company that is driven by technology and offers an excellent user experience. This Financial platform provides all the tools you need for self-directed investments.

Robinhood

This platform accepts traders in select States of America’s jurisdiction. Robinhood Crypto is a licensed company with the New York State Department of Financial Services. Also, their cryptocurrencies are not subject to securities laws. 

Although the BITO ETF sounds good, some crypto backers who want to trade bitcoin directly argue that this will create an extra cost for end-users. Something which you could avoid by using cash markets.

However, it is only a matter of time before the world experiences the full impact of the futures market.

This post was last modified on October 19, 2021 7:02 pm

Edith Muthoni

Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, cryptocurrencies, blockchain, and cryptocurrency investments.

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