ProShares Bitcoin ETF (BITO) falls 46% amid Bitcoin downturn, challenging its defensive appeal.

ProShares Bitcoin ETF (BITO) has declined 46% in price and 39% in total return over the past eight months, reflecting Bitcoin's ongoing bear market. Despite its high distribution yield, BITO has not offset losses during Bitcoin's downturn, weakening its perceived defensive value. Additionally, Bitcoin's price movements have decoupled from high-beta equities, indicating it now follows unique supply and demand factors. Given the current macroeconomic environment and Bitcoin's entrenched downturn, further downside risk for BITO is expected.