Which etf will best track bitcoin?

Discussion in 'Crypto Assets' started by wxytrader, Oct 11, 2024.

  1. Well I can send to an exchange and e-transfer to my bank with weekly limits. Don't need a credit card...still better off having the etf as there is really no benefit to holding coin now. It would be like putting money under the mattress.
     
    Last edited: Oct 12, 2024
    #41     Oct 12, 2024
  2. 2rosy

    2rosy

    Your trust is in the banking system and regulators
     
    #42     Oct 12, 2024
  3. No I trust that these etfs are going to track bitcoin. It's just like buying any other etf where there are protections and oversite in place...not like ftx.
     
    #43     Oct 12, 2024
  4. Good stuff Wxy!
     
    #44     Oct 12, 2024
  5. I think the choice of whether to hold bitcoin directly or hold bitcoin in an ETF has everything to do with your situation and primarily where you live. If you live in a western democracy with rule of law and just want to participate in the price increasing then I think the ETF makes a lot of sense. Especially if you’re not overly technical and are worried about losing your coins, I promise you black rock will not lose your coins. If you live in an emerging market or somewhere with hyper inflation and a corrupt government, then holding your coins directly makes way more sense because you get all the benefits of it not being able to be seized and being able to transfer your wealth anywhere by just Memorizing a password. This makes even more sense if your country has capital controls.

    It really just depends on where you live and what you need bitcoin for.

    One thing I’ll add to the discussion with ETFs though that is a big advantage in my view is that it’s just a security like anything else so it’s marginable. If you have interactive brokers, you can buy the bitcoin ETF and borrow money against it at essentially Fed funds +50 basis points. that’s a great advantage
     
    #45     Oct 13, 2024
  6. As far as tracking it, all the spot bitcoin ETFs in the US will basically track it perfectly minus they’re very minimal expense ratios. This is one of the beauties of ETFs and their arbitrage mechanisms.

    The bitcoin futures ETF (BITO) will not and will greatly lag bitcoin over long time frames because of the upward sloping future curve.

    basically, the only reason to touch BITO is for a very short term trade, any longer-term position use the spot ETF or bitcoin directly
     
    #46     Oct 13, 2024
    NoahA likes this.
  7. KCalhoun

    KCalhoun

    wow had no idea there were that many.... thx!
     
    #47     Oct 13, 2024

  8. Set it and forget it bud...bitcoin in any form is not something you trade, its something you hold on for dear life! Hey! I just got hodl!
     
    #48     Oct 13, 2024
  9. Says you! BITO pays a 1.85 monthly dividend lol... :)

    If you bought BITO instead of bitcoin right now, you would get 3615 shares so that's $80k in dividends annually...you think bitcoin is going to go up 80k in a year? There is plenty of room for lagging. :)

    I think the power of dividends are greatly under appreciated on this forum...
     
    Last edited: Oct 13, 2024
    #49     Oct 13, 2024
  10. deaddog

    deaddog

    Don't know where you got 1.85 (from proshares web page)

    upload_2024-10-13_17-5-2.png
    Also notice the trend in payout since June.
     
    #50     Oct 13, 2024