Spot ETF Outperforms Futures Bitcoin Fund

The ProShares Bitcoin ETF (BITO), launched on October 19, 2021, was the first U.S. fund offering Bitcoin exposure via futures contracts. However, BITO's share price has seen a significant decline, largely due to the recurring costs of rolling futures contracts forward. This structural issue makes it less effective compared to newer spot Bitcoin ETFs.

The iShares Bitcoin Trust ETF (IBIT), which holds Bitcoin directly, has demonstrated superior performance in recent periods. Over the past year, BITO's price fell by 35.76%, while IBIT saw a decrease of 33.79%, both underperforming Bitcoin's own 29.64% decline. Even in a rising month, BITO fell further and rose less than IBIT.

The core difference lies in their structure. BITO must constantly sell expiring futures contracts and buy later-dated ones, incurring costs when later contracts are more expensive. This "roll cost" erodes returns over time. In contrast, IBIT, by holding Bitcoin directly, avoids these rolling expenses, leading to a value that more closely tracks the cryptocurrency's price, less operating costs.

Investors have recognized this distinction, with substantial assets moving towards spot ETFs. As of October 7, 2026, IBIT held $69.03 billion in net assets, significantly more than BITO's $1.69 billion as of May 31, 2026. For investors seeking Bitcoin exposure in a brokerage account, IBIT's direct holding structure offers a more effective way to track the coin's performance.