A Managed Futures ETF For Investing In Bitcoin

Blockchain, Technology, Smart, Bitcoin, Money

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Back on May 7th, 30 professional forecasting agencies and experts (see here) forecast that Bitcoin would appreciate by 85.6%, on average, between then and the end of 2023 (i.e. from $28,890 to $40,079). As of yesterday, with 3 weeks to go before year end, their average forecast was surpassed with Bitcoin closing out the day at $43,281.

  • Did you participate in that surge?
  • If you didn't, was it because you thought you would have to create a digital wallet to do so and didn't have the slightest idea how to do that?
  • Would you still like to have an investment in Bitcoin if only you could find an easier way to do so?
  • If so, why not consider buying a Bitcoin ETF that track the price action of the digital token through managed futures contracts?
  • Interested in learning more? If so, read on.

There are 31 such equities trading on Canadian and American stock exchanges (for a list we first compiled in April 2022, see here); we find VanEck Bitcoin Strategy ETF (XBTF) to be most closely aligned with the spot price of the Bitcoin digital token over time.

  • VanEck Bitcoin Strategy ETF (XBTF):
    • has an Expense Ratio of $0.66,
    • has Assets Under Management (AUM) of $70M,
      • was up 37.6% from Sept. 29th to November 30th
      • is up 11.5% MTD and
      • is up 138.3% YTD. 
    • Go here for a chart of the most recent pricing.
  • In comparison, Bitcoin (BTC:USD):
        • was up 43.5% from Sept. 29th to November 30th
        • is up 12.3% MTD and
        • is up 161.9% YTD.

Inverse and Short Cryptocurrency ETFs

Investors also have the option of playing the other side and betting against Bitcoin with one of the following ETFs (though, as the charts show, this hasn't been a winning strategy this year):

  1. ProShares Short Bitcoin Strategy ETF (NY:BITI)
    • It was launched on June 21st, 2022, and is designed to provide inverse exposure to the daily return of bitcoin, minus fees and costs.
    • It trades in futures contracts listed on the Chicago Mercantile Exchange, rather in than the “physical” currency itself.
    • Go here for chart of most recent pricing.
  2. Horizons BetaPro Inverse Bitcoin ETF (TSX:BITI.U)
    • It is designed to provide daily investment results through short investments in bitcoin futures that endeavor to correspond to the single inverse (opposite) performance of an index that replicates the returns generated over time through long notional investments in Bitcoin Futures.
    • Please note that the Horizons BetaPro Inverse Bitcoin ETF trades on the Canadian TSX in U.S. dollars as designated by the "U". If you are American and wish to buy it then provide your broker with the security's CUSIP number (It has a CUSIP number of 74347G291) (Read about CUSIP numbers here) (Go here to read "Advice For Americans On Buying Cannabis Stocks Listed On Canadian Exchanges") to facilitate such a transaction.

More By This Author:

Silver Update: 73% Of Analysts Have Already Seen Their Targets For 2023 Surpassed
Bitcoin Update: Of 43 Forecasts For 2023 Only 12 Are Close
Update: These 7 Analysts To Miss Their 2023 Gold Price Targets - Badly

Disclosure: None

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