ProShares Bitcoin Strategy ETF (BITO) – Investigating Potential Claims

ProShares Bitcoin Strategy ETF (BITO), the first U.S. bitcoin-linked Exchange Traded Fund (ETF), reportedly offers investors an opportunity to gain exposure to bitcoin returns in a “convenient, liquid and transparent way.” The Fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts, but doesn’t invest directly in Bitcoin.  

BITO’s prospectus provides a lengthy list of risk factors, but the key factor is the possibility of losing your entire investment. “The value of an investment in the Fund could decline significantly and without warning, including to zero.”   

Since Bitcoin and bitcoin futures are relatively new investments, they are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The performance of bitcoin futures contracts and therefore the performance of the Fund may differ significantly from the performance of bitcoin, according to the prospectus.  

Aggressive financial advisors may have unsuitably recommended ProShares Bitcoin Strategy ETF (BITO) in an effort to juice returns. Financial advisors, though, are required to recommend only those investments that are suitable for an investor in light of that investor’s age, net worth, income, investment experience, and investment objectives.  So, if your financial advisor unsuitably recommended Nasdaq KBWD, your brokerage firm may be held responsible for any losses incurred.  

Over-concentrated exposure to any sector or investment, but particularly volatile industries like cryptocurrencies is unsuitable for most investors. Diversification is the key to reducing risk.  

BITO is down –27.72 as of December 31, 2021.  

Free Consultation with a Securities Attorney  

The White Law Group is investigating the liability that brokerage firms may have for making unsuitable recommendations of high risk ETNs and ETFs.  

If you lost money investing in the ProShares Bitcoin Strategy ETF (BITO) please call the securities arbitration attorneys of The White Law Group at 888-637-5510 for a free consultation.  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.  For more information on the firm and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.