BITO vs IBIT: Bitcoin Futures ETF vs Spot Bitcoin ETF
BITO launched in 2021: the first US Bitcoin ETF. IBIT launched in January 2024: the first US spot Bitcoin ETF. The structural difference between futures and spot determines whether you actually get Bitcoin's return.
BITO holds Bitcoin futures contracts, not Bitcoin. Every month it must roll expiring contracts forward to the next month, and when the futures curve is in contango (near-term contracts cheaper than long-term ones), each roll costs money. This "roll cost" or "negative roll yield" means BITO's long-term performance has significantly lagged Bitcoin's spot price. Over 2022-2024, BITO lagged Bitcoin by several percentage points per year due to roll costs plus its 0.95% expense ratio. IBIT, launched in January 2024, holds actual Bitcoin in custody at 0.25%. Its performance closely tracks Bitcoin spot because there are no roll costs. For any investor who wants long-term Bitcoin exposure, IBIT is unambiguously the better vehicle. BITO still has uses: it can be held in accounts that don't allow commodity ETFs, and it allows shorting and options strategies that IBIT doesn't replicate as efficiently.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 BITO vs IBIT — Key Facts Side by Side
| Metric | BITO | IBIT |
|---|---|---|
| Fund Name | ProShares Bitcoin ETF | iShares Bitcoin Trust ETF |
| Issuer | ProShares | iShares |
| Tracks Index | Bitcoin CME Futures (rolled monthly) | Bitcoin (spot) |
| Expense Ratio | 0.95% | 0.25% ✓ |
| Cost per $10K/yr | $95.00 | $25.00 |
| AUM | $1.3B | $43.2B |
| Holdings | 1 | 1 |
| Inception | 2021 | 2024 |
| 1-Year Return | -62.39% | -46.86% |
| 3-Year Return | +20.12% | — |
| 5-Year Return | — | — |
| Dividend Yield | 75.49% | — |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.10% | 0.03% |
Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 BITO vs IBIT — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- already use ProShares and prefer staying within one fund family
- want the lowest fees: saves ~$70/yr per $10K vs BITO
- already use iShares and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ BITO vs IBIT — Frequently Asked Questions
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