🤝 BFF Take
For Long-Term Bitcoin Exposure, IBIT Is Clearly Better Than BITO
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.
📋 Quick Takeaways
⛓️IBIT: holds actual Bitcoin, 0.25% ER, launched Jan 2024. BITO: holds futures contracts, 0.95% ER, launched Oct 2021.
📉BITO loses value vs Bitcoin through monthly futures roll costs. In contango markets, roll drag can exceed 5%/year.
🎯Buying and holding Bitcoin exposure? IBIT. Need futures for hedging or options strategies? BITO has a role.
📊 Data-Based Take: IBIT has the lower fee
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.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
BITO
ProShares Bitcoin Strategy ETF
IBIT
iShares Bitcoin Trust ETF
📋 BITO vs IBIT — Key Facts Side by Side
| Metric |
BITO |
IBIT |
| Fund Name |
ProShares Bitcoin Strategy 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 |
$2B |
$60B |
| Holdings |
1 |
1 |
| Inception |
2021 |
2024 |
| 1-Year Return |
+75.00% |
+120.00% |
| 3-Year Return |
— |
— |
| 5-Year Return |
— |
— |
| Avg Bid-Ask Spread |
0.10% |
0.03% |
Data 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.
🎯 Should You Buy BITO or IBIT?
Choose if...
BITO
- You already use ProShares and prefer staying within their fund family
Choose if...
IBIT
- You want the lowest fees — saves ~$70/yr per $10K vs BITO
- You already use iShares and prefer staying within their fund family
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❓ BITO vs IBIT — Frequently Asked Questions
Why does BITO underperform Bitcoin?
BITO holds Bitcoin futures contracts rather than actual Bitcoin. Each month, when its near-term contracts expire, it sells them and buys the next month's contracts. When the futures curve is in contango, meaning future-month contracts cost more than current ones, this roll process costs money. On top of the 0.95% expense ratio, roll costs can add another 3-6% per year of drag versus Bitcoin's spot price, particularly in bullish market environments when futures curves tend to steepen.
Is IBIT safe to own?
IBIT is structured as a spot Bitcoin ETF, meaning it holds actual Bitcoin in custody through Coinbase. BlackRock, the world's largest asset manager, sponsors the fund. The ETF structure means your investment is liquid, regulated, and held in a standard brokerage account, unlike directly holding Bitcoin on an exchange. The risk in IBIT is Bitcoin's price volatility, not custodial or structural risk.
What was the difference between BITO and IBIT in the 2024 Bitcoin rally?
When Bitcoin surged in 2024, IBIT closely tracked Bitcoin's spot price, delivering returns near 100%+ for investors who bought early. BITO also rose substantially but lagged Bitcoin by several percentage points due to futures roll costs. The performance gap between IBIT and BITO during that rally demonstrated precisely why spot ETF structure matters for long-term holders.
Can I hold IBIT in an IRA?
Yes. One of the primary advantages of IBIT over buying Bitcoin directly is that it can be held in IRAs, 401(k)s, and other tax-advantaged accounts. Bitcoin held on a cryptocurrency exchange cannot be placed in a retirement account. IBIT makes Bitcoin exposure available inside retirement accounts for the first time for most retail investors.
New to ETF investing? See answers to the most common ETF questions →
📄 BITO & IBIT Fact Sheets
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.