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re: Official CryptoTalk Thread

Posted on 5/16/24 at 6:46 pm to
Posted by tenderfoot tigah
Red Stick
Member since Sep 2004
10715 posts
Posted on 5/16/24 at 6:46 pm to
quote:

BITO has been paying massive distributions


Can BITO go to 0 or have a massive drop relative to BTC price?
Posted by 98eagle
Member since Sep 2020
2123 posts
Posted on 5/16/24 at 7:09 pm to
quote:

Can BITO go to 0 or have a massive drop relative to BTC price?


If Bitcoin goes up, BITO goes up. If Bitcoin goes down, BITO goes down. BITO tracks Bitcoin very much like the Spot Bitcoin ETFs, but like all derivatives it usually does experience a small degree of decay every time ProShares rolls it's current futures contracts to new futures contracts (typically monthly or more). The recent monthly distributions way more than make up for the annual fee (0.95%) and decay.
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