I'm interested in learning more about ways to gain exposure to bitcoin over the long term, without the hassle of actually holding bitcoin, so I've been looking at BIT0. My understanding is that BIT0 gains exposure to bitcoin by investing in futures contracts, and when you look at the prospectus, it says that "The Fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts."
Yet when you look at the portfolio composition, more than half of the funds (currently 55%) are in cash and short-term treasuries. Given the net expense ratio of almost 1%, can someone explain to me how a holder of BIT0 isn't just paying someone an outrageous amount of money to hold cash? What am I missing with this fund? Is it meant for speculators rather than long-term investors?
Submitted June 10, 2023 at 08:44AM by argybargy3j https://ift.tt/DOPkNhf
