ProShares to Launch the First U.S. Bitcoin-Linked ETF on October 19
BITO will offer access to bitcoin with the convenience, liquidity and tradability of an ETF
BITO will offer investors an opportunity to gain exposure to bitcoin returns conveniently, through a brokerage account. BITO can be bought and sold like a stock and eliminates the need for an account at a cryptocurrency exchange and for a crypto wallet.
“We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one,” said ProShares CEO
“BITO will continue the legacy of ETFs that provide investors convenient, liquid access to an asset class,” commented Sapir. “1993 is remembered for the first equity ETF, 2002 for the first bond ETF, and 2004 for the first gold ETF. 2021 will be remembered for the first cryptocurrency-linked ETF.”
BITO, or ProShares Bitcoin Strategy ETF, will invest primarily in bitcoin futures contracts and does not directly invest in bitcoin.
In July of this year, ProShares’ affiliate company, ProFunds, launched the first bitcoin-linked mutual fund in the
About ProShares
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, and along with its affiliates manages more than
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.
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 are distributed by
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Source: ProShares