Proshares Bitcoin BITO ETF Marks a Huge Milestone for Crypto Currencies
Currencies / cryptocurrency Oct 28, 2021 - 10:58 PM GMTBy: Stephen_McBride
After years in the making, it finally happened…
On October 15, the Securities and Exchange Commission (SEC) approved the first-ever bitcoin ETF.
On October 19, the ProShares Bitcoin Strategy ETF (BITO) debuted on the New York Stock Exchange.
This is a big, big milestone.
In short, this new ETF makes it easier than ever to access bitcoin (BTC)—through the stock market. It’s an opportunity for millions of investors who want exposure to bitcoin without having to open a dedicated crypto account.
Owning BITO isn’t quite the same as owning bitcoin directly. But it’s close. And it’s a lot better than the current options…
Until now, the closest thing to a bitcoin ETF was the extremely popular GBTC Greyscale Bitcoin Trust (GBTC).
GBTC only loosely tracked the actual price of bitcoin—and often diverged from it by 20% or more.
BITO should track the price of bitcoin much more closely. Now that the SEC has greenlit it as a crypto ETF, GBTC has announced it intends to convert to an ETF as well.
- This is a great step forward for the growth of the crypto market…
I’m glad bitcoin has brought so much attention to cryptos.
But make no mistake. Bitcoin is just the tip of the iceberg in this opportunity.
What's going on underneath the surface is far more important.
And ultimately, it will be more profitable...
- In short: A whole new “stock market” is forming in crypto…
Cryptos are a place where everyday investors with as little as $10 can invest in the world’s most disruptive young tech companies.
This has never existed before.
It’s an exciting new frontier for investors. And it’s the main reason why the popular narrative on cryptos is completely wrong…
Most folks think of cryptos as “currencies” that compete with the US dollar. They think people might someday keep their savings accounts in bitcoin, and pay for everyday things with bitcoin.
This is the least exciting aspect of cryptos.
- The cryptos I’m most interested in represent true ownership stakes in real, disruptive, cash-generating businesses.
As I explained earlier this month, the technology behind bitcoin and all other cryptos is called “blockchain.”
Blockchain has essentially transformed what computers can do. I won’t bore you with the technical details. All you need to know is that today’s newest and most innovative companies are being built on the blockchain.
I’m talking real companies… making real money… using the blockchain to disrupt some of today’s most exciting industries.
You can invest in these companies by buying crypto “tokens” in them.
Which is just like buying shares in a company that trades on the stock market. Think of a token like equity or shares in the business.
- Today, many of the most exciting, cutting-edge business ideas are happening on the blockchain: not in the stock market.
When asked about bitcoin late last year, legendary trader Paul Tudor Jones said the crypto was like “investing in a startup tech company.”
That’s important because all sorts of rules and barriers typically stop everyday investors from accessing early-stage opportunities.
For example, you have to be “accredited” to invest in most private companies. And you often need to invest a minimum of $50,000 or $100,000.
So the average guy is locked out.
Cryptos knock down those barriers. Unlike the stock market, cryptos aren’t dominated by Wall Street.
And you can buy tokens in many crypto startups for $10. Sometimes less.
- For example, consider the startup called Helium.
This company sells hotspot routers you can install on your roof.
Their signal reaches about 200X further than a standard Wi-Fi connection. You can then “sell” internet to nearby folks through this Helium router. For doing that, you get rewarded with Helium tokens which you can exchange for real US dollars.
Helium’s making real money selling these routers today.
But Helium’s not listed on the stock market. You must buy its token, HNT, to participate in its rapid growth. Helium’s token has appreciated over 2,500% in the last year.
- A question I often get is: “Can I buy Coinbase (COIN) stock to profit off the growth of crypto?”
Coinbase is the largest crypto brokerage in the US. It’s opening up this “new world” of cryptos to millions of people… in an easy-to-use app.
The short answer is “yes”—owning Coinbase is an easy way to profit off the growth of crypto.
But you should know what you’re buying in Coinbase.
You ARE buying a very large company that should do well as crypto continues to grow.
You’re NOT buying an early-stage crypto project that could return 100–1. You have to buy the specific early-stage tokens for that.
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By Stephen McBride
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