What is WBTC backed by?

I'm curious about the underlying asset of Wrapped Bitcoin, or WBTC. Could you please elaborate on what exactly WBTC is backed by? I've heard rumors about it being somehow connected to actual Bitcoin, but I'm not entirely sure how the mechanism works. Could you explain the process of wrapping Bitcoin into WBTC and what guarantees the value of this wrapped token? Also, is there any risk involved in holding WBTC, given that it's a derivative of Bitcoin? I'm interested in understanding both the potential benefits and potential drawbacks of investing in WBTC.