The 2x Bitcoin Strategy ETF (NYSE: BITX) is a leveraged exchange-traded fund designed to deliver twice the daily return of Bitcoin futures before fees. This means if Bitcoin futures rise 5% in a single day, BITX aims to gain approximately 10%. Conversely, if Bitcoin futures drop 5%, BITX could lose around 10%. However, due to its daily reset mechanism, long-term performance may deviate significantly from double the cumulative Bitcoin return.
Managed by Volatility Shares Inc., a registered investment advisor specializing in leveraged financial products, BITX offers traders exposure to Bitcoin’s price movements without directly owning cryptocurrency. Instead, it invests in cash-settled Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). This structure makes it ideal for short-term speculation but unsuitable for buy-and-hold investors.
Below, we break down everything you need to know about BITX — from how it works and where to buy it, to risks, performance, and key investment considerations.
What Is the 2x Bitcoin Strategy ETF?
Launched in June 2023, the 2x Bitcoin Strategy ETF (BITX) seeks to achieve 2x the daily performance of the S&P CME Bitcoin Futures Daily Roll Index. It does this by holding Bitcoin futures contracts that are rolled forward monthly as they approach expiration. These contracts are cash-settled, meaning no physical Bitcoin changes hands.
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Unlike spot Bitcoin ETFs that hold actual cryptocurrency, BITX operates entirely through derivatives. Its leverage is reset every day to maintain a consistent 2x exposure, which introduces unique risks over extended periods — especially in volatile markets.
Because of daily compounding and volatility drag, BITX’s long-term returns often diverge from simply doubling Bitcoin’s performance. For example:
- In a trending market (up or down), compounding can amplify gains or losses beyond 2x.
- In a sideways or choppy market, volatility drag can erode value even if Bitcoin ends flat.
This makes BITX best suited for experienced traders with a clear short-term outlook on Bitcoin price action.
How to Buy BITX: A Step-by-Step Guide
Purchasing shares of BITX is straightforward and can be done through any major brokerage platform. Here’s how:
- Open or log in to your brokerage account
Use platforms like Fidelity, Charles Schwab, Robinhood, or E*TRADE. - Search for “BITX”
Enter the ticker symbol in the search bar to pull up the ETF’s trading page. - Review key data
Check the current price, volume, expense ratio (1.85%), and recent performance before proceeding. Choose your order type
- Market order: Buys at the best available price now.
- Limit order: Sets a maximum price you’re willing to pay.
- Enter the number of shares
Decide based on your risk tolerance and portfolio allocation strategy. - Submit and confirm
Finalize your order and verify execution in your portfolio dashboard. - Monitor regularly
Due to its leveraged nature, BITX requires active monitoring — especially if held overnight or longer.
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Understanding BITX Holdings and Structure
As of early 2025, BITX held approximately $1.98 billion in net assets. The fund is classified as non-diversified, meaning it concentrates heavily in Bitcoin futures rather than spreading investments across multiple assets.
Primary holdings include:
- CME-traded Bitcoin futures contracts (e.g., April and May 2025 expirations)
- Cash-like instruments such as U.S. Treasuries and money market securities used as collateral
At any given time, the fund’s futures exposure may exceed 100% of its net assets due to leverage. For example, recent filings showed:
- 31.69% exposure in April 2025 futures
- 168.29% exposure in May 2025 futures
- ~99.99% held in high-quality cash equivalents
The fund rolls its futures positions monthly to avoid expiration and maintains precise 2x leverage through daily rebalancing.
Should You Invest in BITX?
BITX is not a traditional investment vehicle — it's a short-term trading instrument designed for sophisticated investors who understand leverage and volatility risks.
Who Should Consider BITX?
- Active traders with a bullish or bearish short-term view on Bitcoin
- Those comfortable with high-risk, high-reward strategies
- Investors using tactical allocations to capitalize on market momentum
Who Should Avoid BITX?
- Long-term "buy and hold" investors
- Risk-averse individuals
- Anyone unfamiliar with futures or leveraged ETF mechanics
Key risks include:
- Volatility drag: Erodes returns over time in sideways markets
- Leverage decay: Daily resets magnify losses during high volatility
- Tracking error: Potential deviation from target index due to market conditions
While BITX has delivered strong returns since inception (over 177% NAV gain), past performance doesn’t guarantee future results — especially with leveraged products.
Dividends and Yield
Yes, the 2x Bitcoin Strategy ETF pays a dividend — distributed monthly. As of 2025, its trailing yield stands at 17.5%, one of the highest among crypto-related ETFs.
However, this yield does not come from Bitcoin itself. Instead, it’s generated from interest earned on U.S. Treasury securities and other cash-like instruments held as collateral. This passive income component adds value but should not overshadow the fund’s primary purpose: leveraged price exposure.
Expense Ratio: What You Pay
BITX carries an expense ratio of 1.85% per year, which is relatively high compared to traditional ETFs (many charge under 0.5%). This fee covers management, operational costs, and futures trading expenses.
On a $10,000 investment, you’d pay about $185 annually — a factor worth considering when evaluating net returns.
Historical Performance Overview
Since its launch in 2023, BITX has shown significant volatility — as expected for a leveraged product:
| Time Period | Fund NAV | Market Price |
|---|---|---|
| Quarter | -30.72% | -30.24% |
| 1 Year | -21.74% | -21.63% |
| Since Inception | +177.76% | +178.23% |
Source: Volatility Shares
Note: NAV (Net Asset Value) reflects the fund’s underlying worth; market price reflects investor sentiment and trading dynamics.
While long-term gains appear strong, the sharp quarterly declines highlight the risk of holding during downturns.
Frequently Asked Questions (FAQ)
Q: What is the ticker symbol for the 2x Bitcoin Strategy ETF?
A: The ticker is BITX, listed on the NYSE.
Q: Does BITX track the price of actual Bitcoin?
A: No. BITX tracks Bitcoin futures via the S&P CME Bitcoin Futures Daily Roll Index — not spot Bitcoin prices.
Q: Can I hold BITX long-term?
A: It’s not recommended. Due to daily resets and volatility drag, long-term returns often underperform expectations.
Q: How does daily resetting affect performance?
A: Daily leverage resets mean compounding effects can either amplify gains or accelerate losses — especially in volatile markets.
Q: Where are BITX’s futures traded?
A: All futures contracts are traded on the Chicago Mercantile Exchange (CME).
Q: Is BITX suitable for beginners?
A: No. This ETF is complex and risky — best suited for experienced traders familiar with derivatives and leverage.
Final Thoughts: Is BITX Right for You?
The 2x Bitcoin Strategy ETF (BITX) offers a powerful tool for traders seeking amplified exposure to Bitcoin’s price movements without owning crypto directly. With monthly dividends, high yield potential, and easy access via stock brokers, it’s an attractive option for active investors.
However, its high expense ratio, volatility drag, and complexity make it unsuitable for most long-term portfolios. Always assess your risk tolerance and investment goals before entering leveraged markets.
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