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How to buy ProShares Bitcoin Strategy units | $30.7

To buy shares in BITO, you’ll first need to sign up to a broker that allows access to the New York Stock Exchange.

The ProShares Bitcoin Strategy ETF, the first crypto-based fund approved for US markets, started trading Tuesday, Oct. 19 on the NYSE under the symbol BITO.

While it is not the first Bitcoin ETF globally, BITO's launch in the U.S. represents a major milestone in the acceptance of Bitcoin as an investable asset.

US-based Bitcoin ETFs also open the door for more US investors to own Bitcoin. Many US brokerages do not offer access to cryptocurrency or to foreign exchanges where other crypto funds might trade, while access to US-traded ETFs is common.

The ProShares ETF is the first crypto-based fund approved by the Securities and Exchange Commission for trading in the US, after a decade of applications from ETF sponsors. Many more appear to be on the way. A second has already launched, a third is expected within days, and many more are awaiting approval or being planned.

Trading opened at $41.94, and shares traded in a range from $37.34 to $43.95 in its first few days on the market, slight underperforming Bitcoin. The target is to match Bitcoin's return.

Here's how bullish investors can get involved with this Bitcoin ETF.

How to invest in ProShares Bitcoin Strategy

  1. Compare online brokers. To invest in exchange traded funds (ETFs) listed in the United States, you'll need to sign up to an ETF broker with access to US markets. Our table below can help you choose.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details. Fund your account with a bank transfer, PayPal or debit card.
  3. Search for the ProShares Bitcoin Strategy. Find the ETF by name or ticker symbol: BITO. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until the ProShares Bitcoin Strategy reaches your desired price.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
  6. Check in on your investment. Congratulations, you've invested in the ProShares Bitcoin Strategy.

Compare online ETF brokers

1 - 6 of 25
Name Product Standard brokerage for US shares Currency conversion fee Asset class
eToro
Finder AwardExclusive
eToro
US$0
50-150 pips
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply).
CFD service. Capital at risk.
Join the world's biggest social trading network when you trade stocks, commodities and currencies from the one account.
Moomoo Share Trading
US$0.99
55 pips or 0.0055 AUD/USD
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get an additional 30 days on top of the regular brokerage-free period for new accounts. T&Cs apply.
Trade shares on the ASX, the US markets and buy ETFs with Moomoo. Plus join a community over 20 million investors.
Spaceship US Investing
US$0
0.70%
US shares, ETFs
Dive into US markets with $0 brokerage, starting with just a $10 investment.
Unlock US stocks and ETFs with minimal entry barriers, offering straightforward, low-cost options for new and seasoned investors.
Tiger Brokers
US$2
37 pips
ASX shares, Global shares, US shares, ETFs
Trade Australian, US and Asian stocks with no minimum deposit on Tiger Broker’s feature-packed platform.
CMC Invest
Finder Award
CMC Invest
US$0
0.60%
ASX shares, Global shares, Options trading, US shares, ETFs
$0 brokerage on US, UK, Canadian and Japanese markets (FX spreads apply).
Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).
Webull
US$0.25
0.50% (50 pips)
ASX shares, Global shares, Options trading, US shares, ETFs
Sign up & deposit $200 to get $100 of rewards value, or deposit $1,000 to get $200 worth. Up to $5,450 value available. T&Cs apply.
Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.
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What we know about the ProShares Bitcoin Strategy

Launched by ETF issuer ProShares and headed by CEO Michael L Sapir, the fund is designed to be a simple way for investors to get exposure to the Bitcoin currency.

However, investors don’t actually own Bitcoin directly through the fund. Unlike traditional ETFs that buy and sell underlying assets such as stocks or gold, BITO uses futures contracts to profit from Bitcoin price fluctuations.

In other words, it uses contracts that speculate on the future price of Bitcoin to try to match Bitcoin's ups and down. In reality, depending on how volatile the market is and other factors, these prices could differ significantly, a somewhat unique risk.

Thus far, the Bitcoin ETFs on the US market rely on futures. ETFs that actually own Bitcoin are in the works, but it's unclear when or if the SEC will approve those.

To check out other Bitcoin-related ETFs, check out our bitcoin ETF guide.

Here's a look at how the two Bitcoin ETFs and Bitcoin itself have traded since the ETFs launched.

Are cryptocurrency ETFs a good investment?

Quick verdict

Good for
  • Allows investors to gain exposure to Bitcoin without the need for owning the underlying security
  • Avoids the hassle of setting up a Bitcoin wallet
  • Stepping stone for retail investors
  • Lower fees and more liquid than traditional crypto markets
Not so great for
  • Investors do not own Bitcoin itself
  • Being a futures contract it does not directly track the underlying asset. Instead investors trade on contracts at a predetermined price and date.

Jeff Yew, Founder & CEO at Monochrome Asset Management

Picture not described"Bitcoin as a technology is battle-tested, but there is an inherent operator's risk when self-acquiring, holding and managing a bitcoin position even for the most experienced digital native, hence there's a market for those who prefer a safe pair of hands to manage their investment in exchange for a small management fee.

"Investing in a Bitcoin ETF offers investors the benefits of a safe yet low barrier to diversifying their portfolio into the asset class since it's a well understood financial product for most investors."

Who is the ProShares Bitcoin Strategy suited for?

ProShares' ETF is suited to investors who want to gain exposure to Bitcoin without owning the underlying asset, which is Bitcoin itself.

Investors in the ProShares' ETF need to be comfortable with the fund trading future contracts, rather than actual Bitcoin. What this means is that while a rise in Bitcoin prices should mean a rise in the value of the ETF, and a drop mean a loss. neither move is guaranteed to be matched exactly by the ETF because it is trading futures.

Using the ETF is also suitable for retail investors who do not understand or want to deal with the complexities around investing and storing crypto assets, those who don't have a broker offering access to crypto, and who don't want to trade futures themselves.

Past developments

02 February 2023: According to Bloomberg data, roughly $40 million has flowed ino the ProShares Bitcoin Strategy ETF as investors look to cash in on Bitcoin's price. Over the last month, the original crypto asset has surged 43%, although it still remains a long way off its record highs set in 2021.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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