Trading Bitcoin in the BITO ETF?

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10th Nov '21 by globetrotter

4 comments 418 reads

Any views yet on BITO ? ProShares—a provider of specialized exchange-traded products based in Bethesda, Maryland, USA—began trading of the Bitcoin Strategy Fund on Oct. 19, 2021, marking the first Bitcoin ETF to trade in the US. Using and ETF to invest in Bitcoin gets around the problem of converting cryptocurrency to / from liquid funds with ease, but ETFs have their own foibles, and built-in charges. They can also be used by, for example, SIPPs and stock dealers which don't have the facility to trade directly in commodities or currencies. Curious for feedback.

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About the Author

Globetrotter

Premium Member

4 comments

gus 1065

11th Nov '21

A synthetic based on a derivative of a virtual intangible - what could possibly go wrong? (I think I’m too much of a tech dinosaur to be in their target market).

Best of luck!

Gus.

globetrotter

11th Nov '21

I could've bought Bitcoins at c. £100 a pop 10-12 years back but didn't. 1 BTC is now worth c. £48k. l don't trust that market, but the direction of travel is toward digital currencies. Entrepreneur (Baroness ) Michelle Mone waxed lyrical about its potential a few years back, but questions now.: https://www.p2pfinancenews.co.... I know someone who deals in them, and the last time we spoke he was out of that market, but watching. He also mentioned the massive price swings. My son has dabbled in one crypto variant and made a few bob. BTC and teh other cryptos maye stabilise with say a UK digital currency. An ETF offers possibilities for investment (with the usual caveats) where your BTCs are not just redeemable at Shopify or Tesla. Moreover who knows what would be programmed into a govt. digital currency (payee filtering, tax deductions, personal data-tracking, expiry date, planned inflation, exchange controls, political / favoured spending ..teda ...teda). BTC claims to have none of those, so may well be the digital cupboard of choice -- and increasing value. Thus an ETF keeping options open. That was my thinking and basis for feedback.

AnonymousUser1822519

11th Nov '21

If you had bought £3000 pounds of Shib only a year ago, it would be worth billions. Simarly with dogecoin a bit further back. That 's just insane. There are about 10,000 cryptos so thats 1 in 10,000 of winning jackpot. If you know your cryptoes than you can narrow down that number considerably. Compare that to the lottery of 1 in 60 million.

I bought some Shib a a few months ago, but sold out just before it went up 1000 percent in a few days. Since the ban on funding on Binance, I can't buy anymore, which is quite annoying. As Cryptoes are purely technical you need to be superb at charts and adept at risk management to succeed. Theres none of the fundamentals you have to worry about with Stocks - basically cryptoes have no earnings right now. The flipside is that without fundamentals you don't know if what you are buying is going to be around for too long, and that goes for the whole of cryptoes market. It still early days, stock market been around for centuries, so who knows what will happen in the future. But if you play cryptoes for the short term, make your money and than pull it out, you wont need to worry about longevity. Thats the best strategy in my opinion.

jrs

12th Nov '21

As far as I am aware this ETF is not traded on UK platforms, so interested on a wider point how one trades ETF which are US based? Any thoughts gratefully received.

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Trading Bitcoin in the BITO ETF?

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Globetrotter

4 comments

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