Want to Invest in the First-Ever U.S. Bitcoin ETF? 11 Things for Potential BITO Investors to Know

Investors that want to invest in Bitcoin (CCC:BTC-USD) without buying the crypto directly can start looking toward the first ETF.

Bitcoin tokens on a motherboard representing BTC ETFs.

Source: Momentum Fotograh / Shutterstock.com

Here’s all the recent news investors need to know about Bitcoin ETFs.

  • Recent reports claim that the U.S. Securities and Exchange Commission (SEC) isn’t going to get in the way of a Bitcoin Futures ETF from ProShares and Invesco.
  • If so, that would open the way for the first Bitcoin ETF and could have others following suit.
  • This futures ETF, named ProShares Bitcoin Strategy ETF (BITO), will allow investors to jump in on the crypto hype without directly holding BTC.
  • So why would traders want to hold a stake in a Bitcoin futures ETF rather than the crypto?
  • A futures ETF isn’t based directly on the value of the asset it represents.
  • As a result, its price can fluctuate higher and lower.
  • That means that traders might be able to get in at a lower price than BTC during a fall and sell at a higher rate during a rally.
  • On that same note, additional costs that come with an ETF mean it will likely be more expensive to invest in than just buying BTC.
  • However, the risk of loss is still strong as an investment in an ETF won’t protect traders from fluctuations in Bitcoin prices.
  • Bitcoin has been on the rebound lately as the price of the crypto soars higher.
  • This has it trading in the $61,000 range, which is approaching the cryptos’ all-time high of $64,863.10.

Crypto traders looking for more news today will want to stick around a little longer!

We’ve got all the latest coverage of the crypto space that investors need to know about today. That includes talk about BTC reaching $100,000, how much Dogecoin (CCC:DOGE-USD) investments from a year ago are worth now, as well as details on Shiba Inu (CCC:SHIB-USD) rising this month. You can find all of that info at the following links!

More Crypto News for Monday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/10/want-to-invest-in-the-first-ever-u-s-bitcoin-etf-11-things-for-potential-bito-investors-to-know/.

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