The ProShares Bitcoin ETF (BITO) has emerged as one of the most closely watched exchange-traded funds in the cryptocurrency space since its debut on the NYSE Arca exchange. As the first U.S.-listed Bitcoin futures-based ETF, BITO offers investors a regulated and accessible way to gain exposure to Bitcoin’s price movements without directly owning the digital asset. This article dives into BITO’s performance, holdings, fees, and market dynamics while addressing common questions and investor considerations.
Understanding the ProShares Bitcoin ETF
Launched on October 18, 2021, the ProShares Bitcoin Strategy ETF (BITO) marked a pivotal moment in crypto adoption by traditional financial markets. Unlike spot Bitcoin ETFs available in other jurisdictions, BITO invests in CME-traded Bitcoin futures contracts, aligning with SEC regulatory frameworks for commodity-based ETFs.
BITO is managed by ProShare Advisors, LLC, a seasoned player in the ETF industry known for its innovative financial products. The fund aims to track the performance of the CME CF Bitcoin Reference Rate (BRR), which serves as the benchmark for U.S. dollar-denominated Bitcoin pricing.
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Key Performance Metrics
As of mid-2025, BITO continues to maintain strong market presence with the following key statistics:
- Current Price Range: $21.01 – $21.31
- 50-Day Range: $19.89 – $23.43
- 52-Week Range: $16.11 – $27.88
- Trading Volume: 5.79 million shares (average volume: 8.99 million)
- Market Capitalization: $2.46 billion
- Assets Under Management (AUM): $2.60 billion
- Net Expense Ratio: 0.95%
- Dividend Yield: Not applicable — BITO does not pay dividends
Despite a decline from its early 2025 opening price of $22.78, BITO remains a liquid and widely traded instrument for crypto exposure within standard brokerage accounts.
Expense Structure and Competitive Positioning
One of the critical factors influencing long-term returns is an ETF’s expense ratio. BITO carries a total net expense ratio of 0.95%, which is higher than the average across broader ETF categories.
Here’s how BITO compares to industry benchmarks:
- Management Fee: 0.95% (above average for NYSEARCA and all ETFs)
- Other Expenses: 0.00% (favorable compared to category averages)
- Fee Waiver: None applied
- Net Expense Ratio: 0.95% — slightly above peer cryptocurrency ETFs (avg: 0.86%)
While the fee structure may appear steep relative to traditional ETFs, it reflects the complexity of managing futures-based crypto strategies and regulatory compliance costs.
Fund Focus and Holdings Breakdown
BITO classifies under the Currency asset class with a focus on cryptocurrency, specifically Bitcoin futures. It operates globally with a blended development level approach.
Top Holdings (as of Q2 2025)
BITO holds four primary positions, primarily composed of Bitcoin futures and short-term U.S. Treasury instruments:
- CME Bitcoin Futures (July 2025) – 73.53%
This contract forms the core of BITO’s exposure, directly tied to Bitcoin’s future value. - CME Bitcoin Futures (June 2025) – 22.38%
A secondary futures position used to maintain continuous exposure as contracts near expiration. - S&P CME Bitcoin Futures Daily Roll Index Swap (Société Générale) – 4.12%
This swap helps manage roll yield and reduces volatility during futures rollover periods. - U.S. Treasury Bills & Net Other Assets – ~0.00% combined
Minimal cash reserves are held in ultra-short-term government securities for liquidity and collateral purposes.
This concentrated holdings structure ensures tight tracking of Bitcoin’s performance while adhering to Commodity Futures Trading Commission (CFTC) and SEC guidelines.
Trading and Liquidity Features
BITO is listed on the NYSE Arca exchange under the ticker symbol BITO and is fully optionable, offering both call and put options for advanced trading strategies.
Key trading metrics include:
- Options Volume: 24,761 contracts
- Call Options: 17,918
- Put Options: 6,843
- Short Interest: 15,850,000 shares
High short interest suggests active bearish sentiment at times, often reflecting market skepticism during crypto downturns — yet also indicating strong liquidity and investor engagement.
The fund’s beta of 1.90 highlights its high volatility compared to the broader market, making it suitable for experienced investors comfortable with amplified risk-reward dynamics.
Frequently Asked Questions About BITO
What is the ProShares Bitcoin ETF (BITO)?
BITO is a U.S.-regulated exchange-traded fund that provides exposure to Bitcoin through futures contracts traded on the Chicago Mercantile Exchange (CME). It allows investors to participate in Bitcoin’s price movement without holding the underlying cryptocurrency.
How can I buy BITO stock?
Shares of BITO can be purchased through any online brokerage platform that offers access to U.S. equities, including Charles Schwab, Fidelity, E*TRADE, and Vanguard.
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Does BITO hold actual Bitcoin?
No. BITO does not hold spot Bitcoin. Instead, it invests in regulated Bitcoin futures contracts, which derive their value from the expected future price of Bitcoin.
Is BITO suitable for long-term investment?
Due to the structure of futures contracts — which require periodic rolling — BITO may experience tracking errors over extended periods, especially in contango markets (when future prices exceed spot prices). Therefore, it’s often better suited for short- to medium-term tactical positioning rather than long-term buy-and-hold strategies.
Who manages the ProShares Bitcoin ETF?
The fund is managed by ProShare Advisors, LLC, with portfolio oversight by Alexander Ilyasov and George Banian. J.P. Morgan Chase Bank serves as custodian, administrator, and transfer agent.
What are the tax implications of investing in BITO?
As a Regulated Investment Company (RIC), BITO distributes gains and losses annually. However, because it holds commodity futures, it may generate Section 1256 contracts, resulting in 60% long-term and 40% short-term capital gains treatment regardless of holding period — a key consideration for tax planning.
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Final Thoughts
The ProShares Bitcoin ETF (BITO) remains a landmark product in bridging traditional finance with digital assets. While not without limitations — such as tracking drift and higher fees — it offers a compliant, liquid, and accessible entry point into Bitcoin for mainstream investors.
As regulatory clarity improves and spot Bitcoin ETFs gain traction in the U.S., BITO’s role may evolve. However, for now, it continues to serve as a vital tool for those seeking regulated exposure to one of the world’s most influential digital assets.
Whether you're a seasoned trader or a curious newcomer, understanding BITO’s mechanics, risks, and opportunities is essential in navigating today’s dynamic financial landscape.