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ProShares Bitcoin Strategy ETF (BITO) is an exchange-traded fund that seeks to provide investors with exposure to Bitcoin’s price performance through futures contracts traded on regulated markets, rather than holding the crypto asset directly. The ETF is managed by ProShares and trades under the ticker BITO on NYSE Arca.
Classified as an alternative strategy ETF with a crypto focus, BITO aims to reflect, before fees and expenses, the aggregated performance of the Bitcoin futures contracts included in its benchmark index. To achieve this objective, the fund employs a passive management strategy, maintaining exposure to key contract maturities.
BITO’s benchmark index is composed of Bitcoin futures contracts traded on regulated exchanges, weighted according to a methodology designed to approximate the price performance of the underlying asset, with regular roll and rebalancing processes.
Diversification and sector exposure
BITO provides exposure to the performance of Bitcoin through derivatives, without direct investment in the cryptocurrency itself, including futures contracts and indirect exposure to Bitcoin price movements via the derivatives market.
This structure enables investors to access Bitcoin’s price dynamics within a regulated, exchange-traded vehicle.
Structure and costs
Shares of BITO are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund carries an expense ratio consistent with alternative strategy and derivative-based ETFs, reflecting the cost of exposure to Bitcoin futures, and does not charge a performance fee.
BITO does not have periodic income distribution as its primary objective; however, occasional distributions may occur based on gains from futures contracts, which do not generate regular cash flows.
The ETF has a single share class and trades exclusively under the ticker BITO.
History and evolution of the ETF
ProShares Bitcoin Strategy ETF was launched in 2021, becoming one of the first U.S.-listed ETFs to offer regulated exposure to Bitcoin performance through futures in an exchange-traded structure.
Since its inception, BITO has been used by institutional and individual investors seeking access to Bitcoin’s price performance in traditional markets, particularly by those who wish to avoid direct crypto custody.
Between 2021 and 2024, the ETF reflected the high volatility typical of Bitcoin and crypto markets, tracking major price cycles, significant macroeconomic events, and shifts in investor appetite for digital assets.
