Should You Buy a Bitcoin ETF?

Morningstar ETF expert Ben Johnson explains how Bitcoin ETFs work, and why they may not be the best option for tracking cryptocurrencies

Ben Johnson 26 October, 2021 | 12:24AM
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Bitcoin

Even as the first Bitcoin-tracking exchange-traded fund pulled in buckets of money, ProShares Bitcoin Strategy ETF (BITO) was showing why funds of its kind are a bad deal for investors.

The issue isn’t with the fact that the ProShares ETF, along with another new entrant, Valkyrie Bitcoin Strategy ETF (BTF) are Bitcoin-tracking strategies. It’s how they do it.

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Ben Johnson

Ben Johnson  is director of passive funds research at Morningstar.