Why Bitcoin Futures Funds Like BITO Keep Losing Ground to Direct-Holding Alternatives

Every time a Bitcoin futures fund rolls its expiring contracts forward, it quietly bleeds value that holders rarely notice until they compare their returns against a fund built differently. The gap between BITO and IBIT reveals exactly how much that…

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The ProShares Bitcoin ETF (NYSEARCA:BITO) became the first U.S. Bitcoin fund when it launched on October 19, 2021, giving investors exposure to Bitcoin (CRYPTO:BTC) through futures contracts rather than the coin itself. Since that launch date, BITO’s share price is down significantly. The structural cause is the recurring cost of rolling futures contracts forward. While holders bought BITO for a sound reason — it was once the only regulated way to get Bitcoin exposure in an ETF — today it proves to be ineffective. The iShares Bitcoin Trust ETF (NASDAQ:IBIT) holds Bitcoin directly, and that difference in structure is the focus of this comparison.

Both Funds Lost Heavily Over the Past Year

Over the past year, BITO posted a price change of -35.76%, and IBIT posted a price change of -33.79%. Bitcoin itself declined 29.64% between October 7, 2025, and October 7, 2026. During that time, the spot fund lost roughly a third of its value.