The ProShares Bitcoin ETF has remained an important link between traditional financial markets and the digital asset sector, giving investors access to bitcoin-related returns through a regulated exchange-traded structure. Its performance also highlights the growing importance of understanding how futures-based products behave as bitcoin becomes increasingly integrated into global capital markets.

BITO Offers Bitcoin Exposure Through a Futures-Based Structure

Launched on October 18, 2021, BITO was the first U.S. bitcoin-linked ETF. Rather than directly holding bitcoin, the fund uses bitcoin futures and swaps to obtain exposure to the cryptocurrency. This structure allows investors to trade shares through conventional brokerage accounts while transferring the management of futures positions and related portfolio mechanics to the fund.

As of July 27, 2026, BITO had approximately $1.43 billion in net assets and an expense ratio of 0.95%. Its net asset value stood at $8.79, compared with a market price of $8.78. The fund also has options available, adding another layer of market liquidity around the product.

Performance Reflects Bitcoin’s Volatility

BITO’s recent performance illustrates the scale of volatility in cryptocurrency markets. Through June 30, 2026, the fund recorded a negative 34.02% return for both its NAV and market price over the first six months of the year. Over the preceding 12 months, the NAV return was negative 47.34%, while the market-price return was negative 47.30%.

The figures demonstrate that access through an ETF does not remove the underlying volatility associated with bitcoin. They also highlight the importance of distinguishing between short-term price movements and longer-term performance when assessing a futures-based cryptocurrency product.

Futures Exposure Creates Additional Factors for Investors

BITO’s structure means its performance is influenced by more than movements in the spot bitcoin price. As of July 21, 2026, approximately 82% of its exposure was allocated to CME bitcoin futures, while another 14% was linked to Coinbase bitcoin futures. The fund also held exposure through a swap linked to the S&P CME Bitcoin Futures Daily Roll Index.

This futures exposure can create differences between the ETF and the underlying cryptocurrency over time because contracts must be rolled as they approach expiration. Market conditions in bitcoin futures can therefore affect returns independently of changes in the spot market. BITO also distributes income monthly, although those distributions can vary significantly. As of June 30, its 12-month yield was 75.49%, compared with a 0.04% SEC 30-day yield, illustrating why historical distributions should not be interpreted as a fixed or predictable income stream.

For investors in Israel and other international markets, BITO offers a useful lens into how traditional investment structures are adapting to digital assets. Going forward, investors will be watching bitcoin prices, futures-market conditions, fund assets, distribution levels and the relative performance of futures-based products versus spot bitcoin ETFs. The broader question is how these competing structures will evolve as institutional participation in cryptocurrency markets continues to develop.