Whatever You Do, Don't Buy This ETF!

The market's reception of the ProShares Bitcoin Strategy ETF (BITO) was impressive, but there's a hidden cost that could sap investors’ profits… The market's reception of the ProShares Bitcoin Strategy ETF (BITO) was impressive, but there's a hidden cost that could sap investors’ profits... [Energy and Capital logo] Whatever You Do, Don't Buy This ETF! By Jason Williams Written Oct 27, 2021 Well, it finally happened last week. The SEC didn’t stop the first Bitcoin ETF, ProShares Bitcoin Strategy, from launching into the markets. And it was pretty well-received. The new product topped $1 BILLION in trading activity on its first day, making it one of the top ETF debuts in history. Later that day, the underlying asset, Bitcoin, shot past its old all-time high of $64,895 to set a new one close to $67,000. And other cryptos like Ethereum shot up as well. Even the old-timer on the market, the Grayscale Bitcoin Trust (GBTC) saw some action, rising from around $45 on Monday to over $52 on Wednesday. And on the day of the debut, GBTC actually filed to switch from being a trust to an ETF as well. It would seem that this cryptocurrency “fad” isn’t going away anytime soon… But you already knew that because we’ve been telling you these digital currencies have a place in your portfolio since Bitcoin cost about $500. But we’re not recommending you put this new ETF (or any of the ETFs based on Bitcoin futures) in your portfolio. That’s because, unbeknownst to most investors, those funds come with an awfully expensive price tag. And I’m not talking about the valuation… Have You Heard of “TriFuel-238”? A single ounce could power your home for a year. Under half an ounce could get you from LA to D.C. And now, according to figures from the U.S. Energy Information Administration... The breakthrough known as "TriFuel-238"... Could trigger a wealth event unseen since the dawn of the internet... As it takes the throne as the cheapest source of energy on the planet. This has nothing to do with renewables or fossil fuels — or virtually anything you’ve ever seen before. Yet this strange substance could now claim the lion’s share of a $1.9 trillion opportunity... And hand early investors a potential life-changing fortune. [Click here for the urgent details.]( Getting Tough to Carry You see, when you build an ETF based on futures contracts and not the actual underlying security, you’ve got a problem. The security is around forever, but those contracts expire. And before they do, the fund has to “roll” them into new contracts. That’s a continuous process and it means the fund is continually paying what’s known as “carry costs.” At this point, just a week into its existence, the new ProShares fund already accounts for nearly 25% of open interest in both October and November contracts. It’s going to keep growing, and more ETFs are coming. And as these products gather more assets as more and more investors pump money into them, that carry cost could impact both shareholders and the entire futures market. These funds are going to be competing against each other in a relatively small market. That means they’ll be driving the prices up as they attempt to outbid each other for the contracts they MUST have. And since mid-2019, the average cost of rolling the contracts has been about 8%–9%. The ProShares fund charges a fee of 0.95% to investors. But that’s not even making a dent in the expenses of carrying the trade. With more ETFs in the pipeline, there’s going to be more activity on the futures contracts. And we could get into a situation where the ETFs drive their own prices up by making the contracts they hold increasingly more expensive. That’s not usually a situation that ends well for shareholders. It’s especially bad for those who come in late and get none of the gains but get all the losses as the fund unwinds itself. So I’m not going to recommend you go all-in on this one or any of the ones that will follow in its footsteps. In fact, I’m not even going to recommend Bitcoin itself at this point. It’s a crowded trade with way too many people who bought it because they felt like they should and very few who bought it because they understand what it is. And with the spike of interest caused by the ETF debut and more celebrity stock pumpers — excuse me, I mean influencers — getting on Instagram, I’m not sure if the momentum will hold. You’re getting into that whole “greater fool” territory where in order to make a profit when you sell, you’ve got to find someone dumber than you to buy it. And to be perfectly honest, there are much better options out there that are still flying under the radar of most rank-and-file investors. A Brand-New Internet Is Coming This December [This is it](... the beginning of the future. On December 5, 2021, a brand-new, revolutionary form of the internet will finally make its debut. Nothing will be the same when it’s all over. No street, no building, no car, no human will go unaffected. It could be the greatest technological leap forward since the advent of television, and it’s all in the hands of a single [Arizona-based tech company.]( Bigger Than Bitcoin You see, my colleague Christian DeHaemer has keyed into six small up-and-coming cryptos that he’s convinced are going to deliver returns that make Bitcoin look like a fool's bet. And in case you didn’t know, Christian is one of the original bulls on Bitcoin. Back when most analysts hadn’t even heard of the currency, he was recommending his investors buy it at $449. The people who took that advice and held onto their coins grew that investment 140 times over thanks to his foresight. He also recommended Ethereum, Bitcoin’s younger sister, at $96. That one just hit $4,300 in value, scoring those who listened and held another 40x gain. So when Christian told me about [these new cryptos]( he’d just uncovered, you’d better believe I was all ears. And when he told me he was more bullish on them than he’d ever been on Bitcoin or Ethereum… Let’s just say I got a little excited. So I asked him if I could share his research here with you. And incredible guy that he is, he agreed to put together a presentation detailing the market, the currencies, and how to get some of them into your portfolio. But the thing is these coins are already catching investor attention. In fact, the one he added to the model portfolio two weeks ago is already up double digits! So if you want to catch the wave of profits coming this way, you’ll need to act quickly. That’s why I’m urging you to hear what Christian has to say today — so you can get started investing immediately. He’s done the research and I’m providing the connection. Now all you have to do is [watch his presentation]( and set yourself up for the massive gains all but guaranteed to follow. To your wealth, [jason-williams-signature-transparent] Jason Williams [[follow basic] @TheReal_JayDubs]( --------------------------------------------------------------- Will the U.S. Ban Bitcoin Like China Did? Bitcoin is about to hit hard times yet again, and it’s a story you’ll want to hear — whether you invest in cryptocurrency or not. China, the world’s most populous nation, just made all cryptocurrency illegal. And it looks like the U.S. could be following suit in the banning of Bitcoin... Because the government risks losing all control if Americans switch to non-government money. That’s why President Biden is currently in the process of reshaping our entire financial system. Once Bitcoin falls, a new digital dollar will take center stage using the same type of foundational technology. For instance, Mastercard and Visa are already using this type of technology... Which is expected to grow 1,223% over the next four years. [This might be your last chance to set yourself up for a MASSIVE windfall.]( Browse Our Archives [Stop Wasting the Government's Money!]( [WATCH: Almost Dying on the Chesapeake Made Me a Better Trader]( [Solar Investments That Pay Double-Digit Dividends]( [The COVID Bottleneck Worth Billions for These Biotech Stocks]( [New Bitcoin ETF Launches]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. 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