Whatever You Do, Don't Buy This ETF!

Editor Jason Williams was impressed with the market's reception of the ProShares Bitcoin Strategy ETF (BITO), but he's found a hidden cost that could sap investors’ profits before they even know what happened. Editor Jason Williams was impressed with the market's reception of the ProShares Bitcoin Strategy ETF (BITO), but he's found a hidden cost that could sap investors’ profits before they even know what happened. [Wealth Daily logo] Whatever You Do, Don't Buy This ETF! [Jason Williams Photo] By [Jason Williams]( Written Oct 22, 2021 Well, it finally happened this 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… 10X Bigger Than Amazon, Apple, or Google?? Amazon, Tesla, and Facebook... Along with the Army, Navy, Marine Corps, Airforce and Pentagon are all piling into a controversial new technology. According to the World Economic Forum, over the next few years this new technology could be bigger than mega tech firms like Amazon, Apple, Google and Facebook combined... If you're looking to cash in on the next major tech trend... This is it. [Discover the full story (#1 Tech named inside).]( 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 few days into its existence, the new ProShares fund already accounts for 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. The #1 Gold Stock of the Decade This firm is potentially sitting on the richest undeveloped gold mine on Earth. It trades for around $4 a share right now. But soon it could be trading for $40 or more. [Click here]( for details. 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 fools 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 that 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 that these coins are already catching investor attention. In fact, the one he added to the model portfolio last week 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 --------------------------------------------------------------- How You Can Benefit From Inflation Crisis equals opportunity — so cliche but so true. As the pandemic begins to subside, we’re now facing inflation. And there’s no doubt that this inflation is going to affect everyone. But if you’re a smart investor, you don’t have to worry. You can position yourself now to not only safeguard your wealth but to actually profit from this crisis. You see, there are two sectors you can always turn to when the value of the dollar drops, and those are critical metal mining and cryptocurrency. It’s pretty simple — when your paper currency is losing value, don’t hoard it. Instead, invest in hard assets and digital currency that are not affected by the value of the dollar. Mining and crypto prices are only continuing to rise as the dollar declines. In fact, there are two top mining companies with the largest gold reserves in the U.S. and a company that rules ALL crypto exchanges (not just Bitcoin or Dogecoin) that I want to give you now. But you have to act before inflation gets worse. [Click here to access your free report.]( Browse Our Archives [Amazon Hops Aboard the Ammonia Bandwagon]( [Ban on Plastic Bags... What's Next?]( [Wealth Daily’s Top Space Stocks for 2022]( [My Top 3 Green Transportation Stocks for 2022]( [It's Official: Ammonia Fuel Is Now a Commodity]( --------------------------------------------------------------- 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. To ensure that you receive future issues of Wealth Daily, please add newsletter@wealthdaily.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. Wealth Daily, Copyright © 2021, Angel Publishing LLC. All rights reserved. 3 E Read Street, Baltimore, MD 21202. Your privacy is important to us – we will never rent or sell your e-mail or personal information. Please read our [Privacy Policy](. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment advice. Read our [Details and Disclosures.](