The Bitcoin Strategy ETF, with the ticker symbol BITO, is the first Bitcoin futures ETF in the US market. It was listed on the New York Stock Exchange in October 2021 and is issued by the fund management company ProShares, with a management fee of 0.95%. According to information on its website, BITO tracks the value of Bitcoin through investments in Bitcoin futures on the Chicago Mercantile Exchange (CME). It can be seen that approximately 50% of BITO’s portfolio is allocated to futures contracts expiring in January, while 40% is allocated to futures contracts expiring in February. This means that BITO needs to continuously roll over its holdings of Bitcoin futures by closing out existing contracts before they expire and buying new contracts for March or April. The process of rolling over incurs transaction costs, and there may also be price differences between futures contracts of different durations. Therefore, ETFs that track futures contracts typically have higher costs compared to directly holding the underlying asset.
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