Instead it invests in futures for bitcoin, a regulated market where traders make bets on where the cryptocurrency is heading in the coming months.
Michael Sapir, CEO of ProShares, spoke recently with The Associated Press about the fund’s debut, what kinds of investors it’s serving and about how bitcoin hasn’t lived up to one of its initial pitches to investors.
A: The truth is no one knows.
I was looking at the monitor on the floor of the exchange, and every minute after launch, we would see tens of thousands if not hundreds of thousands of shares being traded.
A: Investors in cryptocurrency skew more toward people who are willing to be early adopters and willing to take on risk.
The first type are long-term holders who believe that the value of cryptocurrency will go up in value and that hopefully it will provide a diversifier for their portfolio.
A: In our communications, we made clear that BITO invests in bitcoin futures, not directly in spot bitcoin.