ProShares Bitcoin ETF (BITO) underperforms with erratic, sharply reduced distributions and high costs, making it a sell.

The ProShares Bitcoin ETF (BITO) continues to underperform compared to newer Bitcoin ETFs, with its 2026 distributions collapsing to less than 1% annualized after high payouts in 2025 and negative Bitcoin returns. Its distribution policy is unpredictable, with possible short-term increases tied to tax year changes, but future payouts remain erratic. BITO's futures-based structure, high expense ratio, and net asset value erosion make it unsuitable for long-term Bitcoin exposure or income-focused investors. Despite some recovery in 2023, BITO remains a strong sell due to these persistent issues.

BITO trades at USD 11.12 on Pluang as of Sep 29, 2026 23:11 WIB, down 0.45% in the past day. Despite the article's focus on dividend uncertainty and structural issues, BITO maintains a market cap of $1.72 billion with a strong buy interest at 83% of order activity. The ETF's price remains well below its 52-week high of $20.75, highlighting ongoing challenges for investors.