BITO: Is Bitcoin Actually In A Supply Deficit?
Main Idea
The author discusses their previous 'buy' rating for the ProShares Bitcoin Strategy ETF (BITO) and their personal investment in cryptocurrencies, while disclosing their non-advisory role.
Key Points
1. The author previously gave a 'buy' rating for the ProShares Bitcoin Strategy ETF (BITO) in January.
2. The author's coverage areas include crypto and BTC miners, and they invest their own capital.
3. The author also writes the Heretic Speculator newsletter on Substack.
4. The author discloses a beneficial long position in BTC-USD and FBTC.
5. The author clarifies they are not an investment advisor and that their views do not represent Seeking Alpha's official stance.
Description
Summary BITO has underperformed spot Bitcoin ETFs due to higher fees and less efficient capital retention, despite robust demand for Bitcoin exposure via ETFs. Bitcoin's supply is in a significant issuance deficit, driven by strong ETF and corporate demand, but offset by long-term holders selling into higher prices. While BITO offers futures-based exposure suitable for some investors, spot and leveraged ETFs are better options for maximizing returns. Given current market dynamics and elevated pr...
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