BITO

Nice_Category

$BITO is a stock. Leveraged Bitcoin Future, i believe.

Which_Asparagus_3152

BTC about to test the AHT again. I'm getting into $BITO play. 🍑🍌

jmats35

I have been using the cycle to my advantage in my 401k by buying BITO at the low. About 2 weeks ago I swapped my BITO for ETHU. When the market flips, I will put the money into ETHD

jcpham

VMFXX is a better yield for me and I don’t have to chase random online banks. BITO is and has been paying nearly a dollar a share per month and trades around $22-24 maybe. If you do the math on that it’s a great yield. Basically any money you save in a “savings account” at a bank is the bank’s money to have fun with. It’s why they don’t pay shit because they don’t care if you deposit it. The only banks that do care and are actively attracting new customers are usually offering a HYSA of some sort. Either way the bank is taking your capital. The $600 is fine you might need it for bills but it is not an investment sitting in a bank account

Wsemenske

Not true for everyone's retirement funds. Some (ie me) can only buy mutual funds with my brokeragelink (Fidelity) However, the mutual fund BTCFX has been a pretty good proxy. It invests mostly in BITO and has 2x my retirement since the start of the year. For comparison, Bitcoin went from 41k to 100k in the same time period. So, it's notnperfect, but beats the other mutual funds by a mile.

South-Ad7472

Isn’t IBIT option already active for sometime. BITO option has been there for a long time. If everyone buys puts, the put price will shoot up to prevent people buy puts. Yes, there will be millionaire made in crashes. Many more people will get burned in shorting. The guess is that a crash like 2017 and 2021 will come.

Which_Asparagus_3152

BTC about to test that 100k again. I'm buying $BITO ETF 🍌🍑💹

kazafraggit

I would sell and buy BITO. Get a monthly dividend and re invest half and keep the rest. Let it compound. But that's my opinion so take it for what it's worth.

Key_Friendship_6767

I’m not sure if you are analyzing this situation properly. I am very familiar with BITO but people don’t pay shit for those options. Jan 2027, 35 strike BITO only pays $2.70…😂 That is 7.7% of your capital in premium. I can just trade normal bitcoin 1x which I can gauge much better and grab 18.90/56.50 which is 33% premium for my capital. I appreciate your effort to help, but I will stick with selling IBIT options.

soks86

Someone asked! Here is the lowdown for US folks: Spot ETF Options (IBIT Options, etc) Futures ETF Options (BITO Options) Cash Settled BTC Futures Options (CME Group Options on Futures) Physically Settled Bitnomial BTC Futures Options Unfortunately Bitnomial is only available via brokers right now with a limited opening for direct retail customers. Also, last I checked their contract size is 0.1 BTC which is $9k. Also, not sure if they treat BTC as assets towards your margin or if it's cash up front.

FuzzyImagination2611

Kind of nervous about the stocks associated with BTC falling once it hits 100k. MARA, IBIT, FBTC, BITO… thoughts?

Time-Consideration46

I am curious why no one mentions purchasing ETFs like IBIT and BITO. I've made a fair amount with them. And, perhaps they might be "safer" than these meme and alt solutions. It is probably a stupid question but I'm interested in your feedback. Thanks

mazobob66

I don't own bitcoin directly, I own a bitcoin ETF, and more specifically, one that trades bitcoin futures - BITO. It has done AWESOME for the past year. Dividends, yes, dividends over the past year are over 50%. Because it is monthly dividends, I have it in a Roth.

grey-doc

I won't tell you what to do but I moved my whole retirement account to 50/50 mix of BITO and MSTR. Yolo, it's not like I would ever be able to retire otherwise.

TSLAmod

Would you say $BITO is still a decaying ETF - even though they are paying monthly dividends? IE, in the long run so you think we will see $BITO go down over time even if the price of BTC stays stable. That’s kind of the confusion I have because the dividend paid is what brings the price down after the ex-div date.

Wsemenske

Dude I never said the price matched it....reread my comment. It pays a monthly dividend, which returns the value to it's holders. I hold a mutual fund (that basically only invests in BITO) and it pays a monthly dividend INSTEAD of fixing the premiums/discounts fluctuations that happen. They do this because traders use those swings. But holders want the assest value to reflect the price movement of the underlying asset. So instead they reciveve a dividend that's roughly proportional to the underlying asset. The price per share of BITO varies, but with the dividend, the asset grows proportional to Bitcoin. https://www.nasdaq.com/market-activity/etf/bito/dividend-history

Wsemenske

Thanks Chat GPT, Except I believe the major reason it diverges is they pay a dividend. I've experience this with BTCFX (a mutual fund that used BITO). While the PRICE doesn't correlate, my PORTFOLIO has a pretty close correlation. That's because every month they pay me a dividend that equals close to the profits. As such, those dividends have a $0 cost basis, but it increases my shares. Thus, it's essentially equivalent. If you are swing trading, these fluctuations matter. But as a holder, it doesn't matter much.

filteredfun

BITO, or the ProShares Bitcoin Strategy ETF, tracks Bitcoin by investing in Bitcoin futures contracts rather than holding Bitcoin directly. Here’s how it works: 1. Bitcoin Futures Contracts • BITO primarily holds Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). • These are agreements to buy or sell Bitcoin at a future date for a predetermined price. • Futures contracts allow BITO to gain exposure to Bitcoin’s price movements without owning actual Bitcoin. 2. Price Correlation • The ETF aims to closely track the performance of the Bitcoin futures market, which often correlates with Bitcoin’s spot price. • However, due to factors like contango (when future prices are higher than spot prices) or backwardation (when they’re lower), the ETF may not perfectly match Bitcoin’s spot price. 3. Rolling Contracts • Futures contracts have expiration dates, so BITO must roll contracts—sell expiring contracts and buy new ones—periodically. • This process can create additional costs or slippage, potentially causing slight differences between BITO’s performance and Bitcoin’s spot price. 4. Cash Holdings and Collateral • BITO keeps a portion of its assets in cash or cash equivalents (e.g., Treasury bills) as collateral for the futures contracts. • This helps manage liquidity and ensures compliance with regulatory requirements. 5. Regulation and Transparency • BITO is regulated by the SEC and offers investors exposure to Bitcoin in a traditional brokerage account without needing to manage private keys or cryptocurrency wallets. While BITO provides a way to gain exposure to Bitcoin, its performance might slightly diverge from the actual price of Bitcoin due to the nature of futures-based strategies.

ChaoticDad21

Until IBIT gets options, I don’t think there’s a good one. BITO gives off a large and variable dividend which makes it tougher imo. I would recommended deep ITM leaps on IBIT when options are available…out through 2026.

kazafraggit

I would say put it in BITO instead. Get between 5 and 7 percent a month dividend.

CUbuffGuy

People asking "why" don't understand the landscape for this asset class. BTC is an institutional asset now. As fears of economic constriction rise, the capital available for risky assets dries up. We just heard from Wall St's biggest tech giants that they are struggling with their AI spend. While it's producing great revenue, the spend to upkeep their current growth rates is rising, while revenue plateaus. This means extra capital which overflows into PE investments dries up. Temporarily this dampens the current trajectory. This is exacerbated by potential tariffs under a Trump presidency, as many of the necessary spends are imports (Taiwan). I don't think it will stop a bull run, but forward looking assets projecting a steep glide path will get hit hard. Think BITX, MSTR, BITO, etc. All those products will take a beating. Expecting to go lower until spending fears are lessened. Most likely 60k before 80k, although I still see BTC trending up long term (forever). Position: 40k MSTR Puts expiring EOM @ 250 strike

the_ats

How? Will there only ever be 300,000 comfortable retirees (for around 15 million circulating) If someone is truly retired, they could hold an ETF like BITO which has an over 140% annual total return trading BTC futures. If someone held $100,000 in BITO a year ago, with dividends, they'd have a portfolio worth $240,000 that pays out roughly 4-5% in dividends monthly. Same with MSTR futures that play off BTC like MSTY. I use those in addition to holding straight BTC

RicoRun

BITO

Hewhoshouldnotbespkn

They fluctuated, but BITO did, and MSTY returned 59.91% yield. I just use the dividends to pay off margin and repeat. Don't care the price of the ETF as I intend to just keep stacking them with MSTR and BTC. Just Google their dividends return charts. They fluctuate with Bitcoin but I have always been in the money as I just hold and only pay margin with the returns. It just keeps growing. I also have ETFs in invested in China for long term dividen growth. My point being, I like using other people's money to increase my holdings while never selling mine. Sometimes I just dump the dividends right into BTC. Ok, 50/50 to be honest. Debt is good. Good debt.

Hewhoshouldnotbespkn

Why settle for second best? I also invest in BITO for dividends.

Hewhoshouldnotbespkn

I stick with BTC, BITO (Dividends), and MSTR. Only of which BTC is king. Everything else to use other people margin to aquire more BTC. Limited exposure to miners as well.

bersrghey

When are options on ETF coming. The dividends on BITO make it a crap choice for options.

Key_Friendship_6767

If I sell a call and it expires worthless on BITO, how is the dividend effecting me here exactly? I don’t actually own any bito. I hold lots of real BTc tho. So it’s sort of a covered call. Thanks in advance for any info

WhiteVent98

I dont like BITO cause of the dividend… Ruins short puts, and if youre ITM you will get cucked out of the dividend 

grey-doc

I have about 4.5k/month in BITO and MSTY. Tax advantaged. Early retirement is dumb?

Key_Friendship_6767

I have been doing this already with BITO. It isn’t a perfect solution because bito isn’t spot Bitcoin. However it is a similar effect. I’ve scraped 4-5k in covered calls so far with it

SatoshiStruggle

A lot of salt in the comments about bitcoin Maxis. Why not by leveraged 2x or 3x bitcoin etfs or buy calls on something like BITO? You can significantly leverage your gains and losses without having to buy shit coins

Jackiemoontothemoon

Ask anyone bag holding BITO if that dividend makes up for the 8% gash it makes in their position every month

Omahut

$BITO is a real interesting one. It's a bitcoin futures ETF instead of spot bitcoin. As such, it already trades options, and so ce futures are already a leveraged product, when bitcoin is having a solid positive run, the excess profits either have to be given to regulators OR paid to shareholders in the form of dividends. They elected to do the latter and the per share dividend payout has actually become pretty wild as BTC has stayed strong. I am sure that will change once the longer term bear market sets in again (looking at late next year if the historical 4 year cycles revolving around the timing of halvings holds up). In bull markets, I'd be more tempted by the futures ETF than I am the spot ETFs for that reason. Near $1.50 per share PER MONTH for something that is hovering around $20/share at the moment is insane.

pierreman

I use BITI to hedge against BITO

Financial-Coffee-644

BITO doesn’t hold BTC, it generates income from futures contracts. FYI

Financial-Coffee-644

More volatility will make BITO more attractive

nigra1

BITO pays Dividends, so you need to factor that in. If it's paid out 46% in dividends (based on price 3.5 years ago), then that's even with BTC.

nigra1

Also - BITO, which pays divs and has an option chain.

mazobob66

If you don't want to own and manage BTC itself, there are ETF's that deal in BTC only. I bought $600 worth of BTC, a couple years ago, and it is worth $549.39 as of right now. I bought an ETF $BITO, and it pays a monthly dividend as well as the trade price going up and down. $BITO has been a better investment than buying BTC itself and holding on to it.

Alan-YWG

Bald, 80 something, in IT since late 70's for 35 years, retired early, trade daily, no day trading, and overweight BTC and related instruments... BITO, MSTR, MARA etc

SuperiorT

I just found out that both Bitcoin ETFs are on Fidelity as well, BITO & IBIT FTW! 🚀

WhiteVent98

$BITI Long Call, or Short Puts $BITO Long Puts, or Short Calls

WhiteVent98

Genuine question? I’ll genuinely answer: This morning the volume was kinda dying. I didnt see people interested in these prices, even though they should be…. So at 9:30am est I bought $BITI Calls meaning I make money if BTC goes down. And it did and I made a buck without having to sell any bit of my stack… so yeah you can do many things. Long Puts / Short Calls on $BITO or Long Calls / Short Puts on $BITI 

WhiteVent98

No not necessarily. Just like opening $BITO puts or better yet $BITI calls, whenever you believe itll go down.

WhiteVent98

Puts on $BITO calls on $BITI

WhiteVent98

$BITI Calls, $BITO Puts...

Alan-YWG

BITO , a USD ETF that does some leveraging and has a monthly distribution.

mahmoud_abdul-rauf

You may have bought a fraudulent ETF I’ve held BITO for some time now and, while the principal is “down”, the total account is up as the dividends are in excess of the amount down in principal

GVRV72

From its [website](https://www.proshares.com/our-etfs/strategic/bito): > BITO invests in bitcoin futures and does not invest in bitcoin. There is no guarantee the fund will closely track bitcoin returns. This is a "bitcoin ETF" (in marketing speak), but isn't a "bitcoin ETF" in terms of tracking its performance.

MiguelLancaster

> "BITO invests in bitcoin futures and does not invest in bitcoin. There is no guarantee the fund will closely track bitcoin returns." literally the first thing I read on their website that's not a spot ETF, holds zero bitcoin, and is not the type of ETF that was the topic of this thread

bildad2

It’s called ProShare Bitcoin Strategy ETF. The symbol is BITO. F minus minus. -100/10. Do not recommend.

Dynatox

Andy for any naysayers in the USA, "BITI" - inverse futures bitcoin etf (as compared to BITO x1 bitcoin futures etf) "SBIT" - x2 leveraged inverse futures bitcoin etf (as compared to BITU x2 leveraged bitcoin futures etf)

SuperiorT

I have BITO from Acorns. There's Bitcoin in it..

Miserable_Twist1

No, because the dividends paid out by BITO are quite large, most of the difference is caused by the dividends. Not sure why it is designed like that, must be some technical reason as no one wants to have to constantly reinvest the dividends to keep up with their investment.

Miserable_Twist1

It's actually not that bad, BITO pays large dividends, not sure why or how that works, just the way that financial instrument is designed. If you simply reinvest the dividends I believe it's only a couple percent off, contango is not that bad on this one. If it was, it would be a simple trade to short the futures ETF and buy the spot ETF.

FractalEnemy

I'm a long way off from retirement age. 25+ years. If I didn't intend to pass-on my coins, I could retire today. I see what you mean after directly comparing IBIT to BITO. Clearly, it out-performs BITO. No argument there. Even if you factor the BITO capital returns, IBIT is still double-digit % ahead, like actual BTC. Each share of BITO has paid me over $7 year-to-date in a tax-free account, whereas IBIT holdings are paper gains until you rake profits. Timing the market hasn't worked for me in the past. I could manually sell the IBIT on a monthly basis, but that is not passive income. It is functionally the same as selling satoshis, as I understand it. And the shares would continue to diminish. I'd have to buy more, to sell again later. The BITO position is less than 4% of my portfolio. I am bitcoin and real-estate heavy. I'm not worried about the BITO position value as much as the hands-free nature of dollars being deposited into my account, without having to sell any shares. That 4% is producing nearly 1/2 of my living expenses. I'm not a big spender. Again, in principle you are correct. If growth is the focus, clearly, IBIT is superior over BITO, just like BTC is. But for someone with a stack of coins that just wants a few grand per month and doesn't want to sell anything, BITO fits the bill.

yellowsockss

i’m with you, i believe theres some terrible misunderstanding on your part on how BITO works. if you want monthly DCA to dollar, regardless of price, you’ll want to go full spot ETF and manually sell a portion of your holdings. BITO’s monthly capital return is not fixed. one month it could be 1% and the next month 2%. i just want to point out obvious contradictory actions: 1. you want passive income but you’re using IRA. are you retired and drawing retirement amount? 2. you claim to DRIP the capital returns into BITO but thats exactly the same (in practice worse) as just holding IBIT. dont forget, holding IBIT directly pulls BTC supply out. holding BITO does not directly pull BTC supply out

FractalEnemy

I appreciate you typing that out. Sincerely. I don't disagree with your assessment that Bitcoin is a better bet. But I can't easily hold bitcoin in my IRA. And I'd rather hold my own coins than a spot ETF. IBIT does not pay dividends (or capital returns). BITO is providing passive income. I don't really care about the share price, so the trailing share price to BTC price doesn't matter. As long as the thing keeps putting more dollars in my account every month, I can chose to reinvest them or buy more bitcoin. My goal is to have passive income to cover my expenses. So far I'm pretty happy with the performance. And the bull has hardly begun. The alternative would be to sell satoshis, and I'm not doing that. That is for future generations. I

yellowsockss

respectfully, DRIPing BITO doesnt do exactly what you think it does. its because each BITO share represents less BTC/share every month. BITO’s exposure to BTC is thru futures contract. they use swap contracts to swap the current futures contract to one with further expiration. the reason they give capital back in dividend is the difference in contracts swapped. you lose out in multiple ways - especially DRIPing: compared to IBIT, BITO has futures premium decay, swap inefficiencies, higher etf fees, and if you DRIP - more exchange spread/fees I think you should really consider restudying the shitty ETF called BITO.

FractalEnemy

And I'm DRIPing the dividends and gaining more shares each month. I added 6% to my position last month, the month before, and the month before that. I'm pretty stoked about it. I hold considerably more BTC than BITO.

FractalEnemy

Bitcoin is volatile as you know. I'm not interested in timing the market. BITO captures premiums for me. Bitcoin can bounce range-bound between 50-70k and BITO will pay me for the upswings. Holding a spot ETF won't, unless I swing trade, which I don't want to mess with.

yellowsockss

i believe you are mistaken. even in a roth account, it makes zero sense to hold BITO over any spot etf. these are not dividends, these are return of capital. theres a difference. it has the same effect of getting forced to sell a chunk of your shares each month.

AlphaLawless

I have over 2k shares in BITO. For the past 4 months alone, I've gotten over 10k in dividends.

yellowsockss

fucking hate my BITO position. forced into short term gain tax rates from a long term capital gain tax rate. looking to liquidate it before the next dividend date.

The_Shogun-

Hahaha I have BITO in RH and I hate it. No good reason other than I’ve had it for so long and I wish I would have moved it. It really isn’t that bad…

New-Visit-7386

Have you seen the dividend payouts on BITO. The only ETF that pays a monthly div. I received 2 dividends on BITO over last 2 months over 10%. And BITO also offers options. Up over 200% from options bought last week. Also up over 100% on MSTR. I leave my bag off line in cold wallet and trade BITO and MSTR. They are great if you know what your doing

padauker

What a timeline we’re on. Thank God for Bitcoin. Making 5 figs on BITO divvys on the monthly is the new normal.

Jaymzmykaul45

I look at bitcoin as similar to gold. Safe heaven when the $hit hits the fan but way too manipulated by the big boys to really make consistent money on, by and uninformed investor like myself. Looking at the big picture I see the volatile nature of bitcoin and think it’s great opportunity to make money. I personally do not currently have hold any bitcoin but I have in the past and sold before any gains. I am not a patient person. I currently hold two bitcoin spot ETFs. BITO, a bitcoin futures dividend powerhouse and IBIT, boring old normal spot ETF. I figure I can capitalize on the volatility with great dividends (%89.21 dividend yield) of BITO and get the pure matching upswing of Bitcoin with IBIT. On top of that BITO has weekly options and those premiums are very sporadic but icing on the Bitcoin cake.

StarFinTech

Hold BTC and buy BITO shares to earn a divi every month for bills etc

ECHuSTLe

I like BITO for the dividend

ryan1064

Anyone else buying up otm BITO calls for March?

tslat3

I’ve been watching BTC pricing for years. It seems like BTC goes down about 5x before surging to ATH’s. This time that would be around $15k. Anybody have thoughts on BITO after a correction?

Random_Name532890

Open brokerage account, sell BTC, buy BITO in brokerage account, request margin loan from bank. Fixed. You can have all that now.

gfaizo

I had no idea you could sell covered calls within a Roth. Why BITO? Do the others not allow it

avance70

just saw some ETF news and checked the chart: $BITO is up 30% in a year, and BTC is up 100% 😅

CUbuffGuy

Only thing I have to keep my eye on is that futures don’t always track BTC as expected. BITO bleeds as BTC stays stagnant.

CUbuffGuy

I just got close to 10k in BITO calls for the next month. For the first time in a long long time RSI on the daily is oversold. We might not be at the exact bottom, but I'm willing to bet a month from now we are closer to 70k again.

South-Ad7472

There is no need to feel bad or good for things that are not under your control. Comparing with the lump-sum in, DCA over a time period and Sell Put option on BITO (check Buffet's coco-cola stock purchase) maybe good alternative strategies if the goal is be treated "fairly" by the market.

AccordingPlate7954

Technically, it'd work in your favor since BITO decrements the rolling costs in the share price. It's an interesting trade idea for sure.

South-Ad7472

If I am selling naked calls on BITO, would the cost on BITO work in my favor? Or I am paying the “premium” as well?

whait

BITO

Rickeyboy53

The contango drag can be seen by comparing BITO to ishares IBIT.

Rickeyboy53

Yes, BITO uses rolling futures and when there is contango, there is a drag. Too complicated to explain here, but look it up.

StarFinTech

[Follow the Bitcoin Rainbow](https://www.blockchaincenter.net/en/bitcoin-rainbow-chart/) Buy hold and purchase on dips. Buy BITO (Bitcoin futures) to get a dividend so you get cash to pay bills.

knowledgelover94

I just wish I understand what these price haircuts do to the price long term. I sold a bunch of puts for around $27. I thought that equated to about 66k btw price but it’s hard to imagine what the BITO price will be in a year (when my contracts expire) even if bitcoin does well.

polyognymous

ETFs are required to pay dividends based on income - [https://www.proshares.com/faqs/dividends-in-proshares-crypto-linked-funds-and-OILK](https://www.proshares.com/faqs/dividends-in-proshares-crypto-linked-funds-and-OILK) See the dividend schedule here - https://www.proshares.com/our-etfs/strategic/bito. If you held BITO on 6/3, you are entitled to a dividend of 1.767963 per share, but you can sell on or after 6/3 and still get the dividend. Thus, one BITO held on 6/2 was worth roughly 1.767963 per share more (putting Bitcoin price fluctuations aside) than one held on 6/3 because anyone buying on or after 6/3 would not get the dividend. I'm a newb at trading, so anyone please correct anything I got wrong.