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Back in July, I wrote about the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO) for Seeking Alpha, with the primary angle being the role of Bitcoin (BTC-USD) in the 2024 general election in
BITO: Buying The 'Breakout Shakeout'
Summary
- Bitcoin is expected to rise regardless of the US election outcome due to its perception as "digital gold" and anti-fiat currency.
- On-chain data shows declining transaction fees and active addresses but increasing demand from ETFs supporting higher BTC prices.
- BITO offers Bitcoin exposure without centralized custody risks, but it underperforms spot ETFs due to its expense ratio and option rolling strategy.
- Bitcoin's strong narrative and historical performance in November suggest the potential for significant price appreciation, despite inherent risks in the mining model.
Former media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. Outside of Seeking Alpha, I write the Heretic Speculator newsletter where I share additional thoughts on finance with more of a social backdrop.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of BTC-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I'm not an investment advisor.
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