BITO: A Tactical Tool, Not A Buy-And-Hold Bitcoin ETF (NYSEARCA:BITO) | Seeking Alpha
HomeMarket OutlookCryptocurrencySummaryI rate BITO a Sell for retail buy-and-hold investors, though it remains useful for tactical traders, options users and institutions requiring a 1940 Act vehicle. Since. . .
HomeMarket OutlookCryptocurrencySummaryI rate BITO a Sell for retail buy-and-hold investors, though it remains useful for tactical traders, options users and institutions requiring a 1940 Act vehicle. Since spot Bitcoin ETFs launched, BITO returned 21. 11% versus 36. 50% for IBIT, despite BITO’s distributions being included in total return. BITO’s 0. 95% fee, futures-roll exposure and tracking differences should continue to weigh on long-term returns versus lower-cost spot exposure. Its 75. 49% trailing yield is backward-looking and unstable, while the 0. 04% SEC yield shows limited recurring portfolio income. IBIT is the stronger choice for direct Bitcoin exposure, while BTCI offers a clearer option-income strategy for investors prioritizing monthly cash flow. Dani VG/iStock Editorial via Getty ImagesIntroductionBITO is the first U. S. bitcoin-linked ETF and was launched in 2021. The fund’s approach allowed investors to obtain Bitcoin-linked exposure through a traditional brokerage account without holding Bitcoin directly. Everything has18 FollowersAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. Seeking Alpha's Disclosure:Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.