Bitcoin futures ETF loses 9% a year to fees and contango
Cost of rolling futures contracts from one month to another exacerbates ProShares ETF’s losses
Investing in a US bitcoin futures ETF just before the underlying derivatives roll over to a new contract adds more than $90,000 of costs per year to an investment of $1 million.
Investors in the ProShares Bitcoin Strategy ETF (BITO) – the first in the US to replicate the performance of bitcoin futures – will pay an average of 8% a year to roll the futures contracts from one month to the next, according to the issuer. The fund mostly invests in front-month futures which expire on January 28
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