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On March 21st, Bitwise announced the launch of Bitwise Bitcoin Strategy Optimal Roll ETF (code: BITC). BITC is a new type of Bitcoin linked ETF designed for long-term investors seeking to increase their Bitcoin exposure. The fund does not invest directly in Bitcoin. The Fund provides targeted exposure to Bitcoin through regulated futures contracts, and seeks to maximize potential rollover returns through selective analysis of Bitcoin futures other than monthly or near monthly contracts.

Bitwise Launches New Bitcoin Linked ETF BITC for Long Term Investors

I. Introduction
II. What is BITC?
III. How Does BITC Work?
IV. Pros and Cons of BITC
V. Comparison to Other Bitcoin ETFs
VI. Conclusion
VII. FAQs
# Bitwise Launches New Bitcoin Linked ETF: BITC
On March 21st, Bitwise announced the launch of their new Bitcoin linked ETF called Bitwise Bitcoin Strategy Optimal Roll ETF (code: BITC). This new investment option is designed for long-term investors who are seeking to increase their Bitcoin exposure in a regulated and low-cost way without directly investing in Bitcoin.
# What is BITC?
BITC is a new type of ETF that provides targeted exposure to Bitcoin through regulated futures contracts. It uses a unique approach to investing in Bitcoin futures contracts that aims to maximize potential rollover returns through selective analysis of Bitcoin futures other than monthly or near monthly contracts. This approach differentiates BITC from other Bitcoin ETFs, which tend to invest in monthly or near monthly futures contracts. BITC’s strategy is to invest in futures contracts where the price of the contract is higher than the expected spot price upon expiry.
# How Does BITC Work?
BITC invests in a portfolio of Bitcoin futures contracts listed on the Chicago Mercantile Exchange (CME) that offers exposure to Bitcoin’s spot price. The fund’s strategy is to maximize potential roll yield, which is the return generated when futures contracts are rolled forward. The ETF’s management team selects futures contracts with an expiration date longer than one month and analyzes the expected roll yield before making investment decisions. This analysis is based on the expected spot price at the time of contract expiration and the price of the contract at the specific point in time when it is being rolled forward.
# Pros and Cons of BITC
Bitwise’s new ETF offers several benefits to investors who want to invest in Bitcoin without exposure to the asset itself. Firstly, it offers regulated exposure to Bitcoin futures, meaning an investor is not exposed to the risk of holding the asset directly. The ETF is regulated by the SEC, which helps to reduce the risk of fraud and provides a certain level of investor protection. Secondly, as an ETF, BITC can be traded on major exchanges, making it easier for investors to buy and sell the fund. Finally, BITC’s unique strategy aims to maximize roll yield, which can result in higher returns compared to other Bitcoin ETFs that use a less selective approach to futures contracts. However, there are also some cons to investing in BITC. Firstly, the fund’s strategy is new, and its performance cannot be predicted with certainty. Secondly, investors must pay a management fee to invest in the fund. Lastly, BITC only invests in futures contracts, meaning it is not exposed to the potential gains or losses of holding Bitcoin itself.
# Comparison to Other Bitcoin ETFs
Currently, there are several Bitcoin ETFs available in the market, such as the Purpose Bitcoin ETF, Evolve Bitcoin ETF, and CI Galaxy Bitcoin ETF. Compared to these ETFs, BITC’s unique approach to investing in Bitcoin futures contracts makes it a differentiated option for investors. BITC’s optimized portfolio is focused on maximizing potential roll yield, which makes it a unique type of investment in the Bitcoin ETF market.
# Conclusion
Bitwise’s launch of the BITC ETF has provided a new investment option for long-term investors who wish to increase their exposure to Bitcoin through regulated futures contracts. BITC’s unique investment strategy aims to maximize potential roll yield, which makes it a compelling option for investors looking for diversified exposure to Bitcoin. However, as with any investment, investors should carefully consider the risks and benefits before investing in the fund.
# FAQs
Q1. What is the expected performance of BITC?
A1. Like any investment, it cannot be predicted with certainty. However, BITC’s unique strategy aims to maximize potential roll yield, which can result in higher returns compared to other Bitcoin ETFs that use a less selective approach to futures contracts.
Q2. How is BITC different from other Bitcoin ETFs?
A2. BITC’s unique approach to investing in Bitcoin futures contracts aims to maximize potential roll yield rather than investing in monthly or near monthly futures contracts.
Q3. Are investors exposed to the risk of holding Bitcoin itself when investing in BITC?
A3. No, BITC invests in futures contracts that offer exposure to Bitcoin’s spot price, meaning investors are not exposed to the risk of holding the asset itself.