Yay ETF... BUT | CoinSnacks

Yay ETF… BUT

The first Bitcoin futures ETF launched this week under the symbol BITO, bolstering an incredible recent run in the price of the cryptocurrency (we are sitting ~$66k at publication). According to Bloomberg, the ETF was the second-most traded in history.

One could say this is a long time coming, as the Winklevoss Twins originally wanted to launch a Bitcoin ETF all the way back in 2013! Hell, here at CoinSnacks, we have been reporting on Bitcoin ETF filings since we launched this newsletter back in the ICO dark ages of 2017.

So congratulations to the Bitcoin market. BUT (and this is a big but), caveat emptor… retail investors should be wary buying into this ETF.

Although it may seem like a great way to gain exposure to the Bitcoin market, futures-based ETFs are not to be trifled with. You have contango, backwardation, and more. Long story short, your Bitcoin exposure is at the whim of futures speculators and not the spot price of Bitcoin at any given point in time. As always, just because it’s hyped and says ETF does not mean it is “safe.”

If you want real exposure to BTC, buy it directly.

If you really want to go through an ETF, we suggest waiting for GBTC or a similar offering.

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