Bitcoin’s surge to above $100,000 has investors flocking to bitcoin ETFs, with some emerging as winners and others struggling. The largest bitcoin ETF, iShares Bitcoin Trust (IBIT), now boasts $51.1 billion in assets, while Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) is close behind with $20 billion.
The ProShares Bitcoin ETF, however, has caught investors’ attention for its high yield of 52.3%. But this comes at a cost: the fund is only up 28% since February, compared to the spot-price bitcoin ETFs which are up around 138%.
“The use of futures contracts in these funds can result in significantly higher yields,” says ProShares’ website. “However, it’s essential to consider the potential drawbacks, including increased volatility and tax implications.”
Despite the risks, many investors are turning to bitcoin ETFs as a way to access the cryptocurrency market. Todd Rosenbluth, head of research at TMX Vetta Fi, notes that bitcoin ETFs often make up only a small portion of an investor’s portfolio.
“It’s essential for advisors and investors to understand the differences between these various funds,” Rosenbluth says. “Some may be more suitable for risk-on investments or those looking for higher yields.”
Source: https://www.investors.com/etfs-and-funds/etfs/bitcoin-etf-yields-52-on-top-of-big-gains