A new Bitcoin fund has been launched to track the price of Chicago Mercantile Exchange futures contracts. The ProShares BITO ETF will provide investors with exposure to this cryptocurrency, which recently soared to an all-time high near $65K due to excitement surrounding its introduction. With the launch of the ProShares Bitcoin Fund on October 19, Bitcoin is becoming more mainstream.
After its debut, the Exchange-Traded Fund (ETF) will be offered on the New York Stock Exchange (NYSE). Brokers who facilitate trading this fund on their platforms have already expressed interest in the BITO ETF. Robinhood, a popular platform geared toward retail investors, is one of them. This type of transaction is also aided by SoFi and Webull.
What is the procedure for purchasing a BITO ETF?
Shares of BITO can be purchased directly from the fund company or through a brokerage. The BITO ETF can provide simple, indirect access to this cryptocurrency for regular investors because ETFs are financial vehicles that can be purchased and sold on an exchange like equities.
How do I purchase BITO using ProShares?
The ProShares Bitcoin Strategy ETF, the first crypto-based fund licensed for US markets, began trading on the New York Stock Exchange on Tuesday, October 19 under the symbol BITO.
While BITO is not the first Bitcoin ETF in the world, it is a significant step forward in the adoption of Bitcoin (BTC) as an investable asset in the United States.
Bitcoin ETFs operating in the United States also allow more US investors to hold Bitcoin. Many US brokerages do not provide access to cryptocurrencies or overseas exchanges where other crypto funds may trade, although US-traded ETFs are widely available.
After a decade of submissions from ETF sponsors, the Securities and Exchange Commission has cleared the ProShares ETF for trading in the United States. There appear to be many more on the way. A second has already gone up, a third is due in the coming days, and a slew of others are pending permission or in the works.
In its first few days on the market, the stock began at $41.94 and traded in a range of $37.34 to $43.95, slightly lagging Bitcoin. The goal is to replicate Bitcoin’s rate of return.
How to invest in ProShares Bitcoin Strategy
- Online brokers are compared. You’ll need to register with an ETF broker to invest in exchange traded funds (ETFs). Our table below can assist you in making your decision.
- Create a brokerage account and deposit money into it. Fill out a form with your personal and financial information. You can deposit money into your account via a bank transfer, PayPal, or a debit card.
- Look for the ProShares Bitcoin Strategy on the internet.
- BITO is an ETF that may be found by its name or ticker symbol. Use the prospectus and other information on the sponsor’s website to make sure you understand how it operates and that it’s a good fit for your financial objectives.
- Invest now or later. Buy now with a market order, or wait until the ProShares Bitcoin Strategy hits your target price with a limit order.
- Make a decision on how many to purchase. Compare your budget to a diverse portfolio that can help you avoid risk during market ups and downs.
- Keep an eye on your money. You’ve made a wise investment in the ProShares Bitcoin Strategy.
Is the BITO ETF available on Robinhood?
The ProShares Bitcoin Strategy ETF, which trades under the ticker name BITO, is a Bitcoin ETF that is now available for purchase. BTF is another Bitcoin ETF to keep an eye on (available on Oct. 22). BITO is now available for purchase via the Robinhood app.
Is it wise to purchase BITO?
This altcoin offers a low-cost option for investors interested in cryptocurrency. With an average daily trading volume of 10.4 million, the fund has developed at a breakneck pace, acquiring $1.3 billion in assets. BITO allows investors to have exposure to Bitcoin without having to hold it.
Is there a Bitcoin fund at Vanguard?
Transacting with Vanguard online is the quickest, easiest, and most cost-effective method. We may be able to pass on more savings to you as a result of lower costs.
Grayscale Bitcoin Trust (BTC) is only available through a prospectus. Before investing in any fund, read and analyze the prospectus carefully to determine that the fund is appropriate for your goals and risk tolerance. Advisory fees, distribution costs, and other expenses are all detailed in the prospectus.
How can I purchase the BITO ETF in Australia?
While BITO is not the first Bitcoin ETF in the world, it is a significant step forward in the acceptability of Bitcoin as an investable asset in the United States.
- Online brokers are compared. You’ll need to join up with an ETF broker with access to US markets if you want to invest in US-listed exchange traded funds (ETFs). Our table below can assist you in making your decision.
- Look for the ProShares Bitcoin Strategy on the internet.
- BITO is an ETF that may be found by its name or ticker symbol. Examine its track record to ensure it’s a good fit for your financial objectives.
- Make a decision on how many to purchase. Consider your budget in comparison to a diversified portfolio that can reduce risk during market ups and downs.
Will the BITO ETF offer diversification?
Options on the ProShares Bitcoin Strategy ETF (ticker BITO) will begin trading on the NYSE Arca Options and NYSE American Options exchanges on Wednesday, following the second-busiest exchange-traded debut in history. “In this instance, options are important,” Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said.
Zoe Stabler, Investment Writer at Finder UK
Long-term investors have been leery about cryptocurrencies because of their enigmatic nature, especially given their lack of centralization. However, cryptocurrencies, like Bitcoin, are becoming increasingly harder to ignore.
Bitcoin ETFs would allow investors to place cryptocurrency-linked investments into their individual savings accounts or self-invested personal pensions, avoiding capital gains tax on the first £20,000 of their investments each tax year. Additionally, because ETFs are managed by professionals for a modest charge, investors may feel more secure knowing their money is in good hands.
Because the FCA has not yet approved these investments in the UK, UK investors will need to monitor the status of bitcoin ETFs.