what's ProShares Bitcoin Strategy ETF?

The ProShares Bitcoin Strategy ETF (BITO) is an exchange-traded fund designed to provide investors with exposure to Bitcoin's price movements without directly holding the cryptocurrency. Instead, it primarily invests in Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME), along with swaps and other instruments to track Bitcoin's performance. Launched in October 2021, BITO was the first Bitcoin-linked ETF approved for trading in the U.S., offering a regulated and accessible way for traditional investors to participate in the crypto market through standard brokerage accounts. BITO's strategy involves rolling over futures contracts to maintain continuous exposure, which can introduce factors like contango or backwardation affecting returns compared to spot Bitcoin prices. The fund is managed by ProShares, a provider of leveraged and alternative ETFs, and adheres to SEC regulations, making it suitable for portfolios seeking crypto diversification. While it does not hold physical Bitcoin, its performance closely correlates with Bitcoin's market dynamics, serving as a bridge between conventional finance and digital assets.