ProShares' Bitcoin ETF underperforms BTC: By How Much?
Around this time last year, the first Bitcoin-linked exchange-traded fund made its debut in the US. ProShares launched its ETF on the NYSE under the ticker “BITO” on 18 October. Back then, ProShares CEO Michael L. Sapir stated that the ETF would open up exposure to Bitcoin to “a large segment of investors” who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a crypto provider. Well, BITO has undoubtedly been able to deliver on that front. But what about price-wise? Have investors been fetched with returns or have they been underwater? Happy Belated Birthday, BITO! Over the past year, BITO has replicated Bitcoin’s price movements. As illustrated below, the candlestick pattern on the chart is quite congruent. However, when the week one highest price to the press time price is compared, it can be noted that BITO has underperformed BTC by roughly...