BITB ETF: Diversifying Risk With Bitcoin (NYSEARCA:BITB)

The Bitwise Bitcoin ETF (BITB) is a passively managed exchange-traded fund designed to track the performance of bitcoin. With the emergence of bitcoin spot ETFs in 2024, BITB is one of the many ETFs on the market for investors to choose from for allocation within a standard brokerage account. While bitcoin has historically been viewed as a speculative asset, many advisors have allocated client funds to the alternative asset in order to gain long-term exposure to the potential price appreciation of bitcoin. Given the volatile and speculative nature of trading bitcoin, investors should use precautions and fully understand the risks with respect to their investment horizon.

Why is Bitcoin a Speculative Trading Asset?

Bitcoin has undergone a number of cycles as a trading asset, initially considered a hedge against the broader equity markets. As bitcoin became more institutionalized, the trading patterns of bitcoin have become more correlated with the S&P 500 Index (SPX) up until October 2025. Following the major liquidation crisis in October 2025, bitcoin entered into an inverse trading pattern with respect to the S&P 500, diverging from the prior trading pattern associated with the Index.