Short bitcoin ETF: is BITI still a viable hedge in 2025?

The ProShares Short Bitcoin Strategy ETF (BITI) remains the only US-listed exchange-traded fund offering inverse daily exposure to bitcoin through regulated CME futures. Launched in June 2022, it has become a recognised tool for traders and investors seeking to hedge or speculate on short-term downturns in bitcoin prices – without directly shorting the cryptocurrency.

Bitcoin (BTC/USD) price chart

Past performance is not a reliable indicator of future results.

What is a short bitcoin ETF?

A short bitcoin ETF (exchange traded fund) provides inverse exposure to the price of bitcoin – meaning it aims to deliver the opposite of bitcoin’s daily performance. BITI seeks to replicate -1x the daily return of the S&P CME Bitcoin Futures Index, which tracks front-month bitcoin futures traded on the Chicago Mercantile Exchange (CME).

Unlike holding the cryptocurrency directly, this type of ETF does not require a digital wallet or custody of the underlying asset. Instead, it uses regulated futures contracts to reflect bitcoin’s price movement in reverse.

As a result, BITI can rise when bitcoin falls, though its returns are measured daily and may diverge from longer-term price moves due to the effects of compounding and futures roll costs.

How does BITI work?

Like its counterpart, the ProShares Bitcoin Strategy ETF (BITO), BITI invests in CME-traded bitcoin futures. The key distinction is that BITI maintains short positions instead of long ones.

Each month, the fund rolls its front-month futures contracts over a five-day period to maintain continuous short exposure. This rolling process ensures daily inverse performance but can also lead to tracking variation over longer timeframes.

As with most futures-based ETFs, BITI’s performance may differ from spot bitcoin prices, particularly during volatile periods or when the futures market is in contango – when longer-dated contracts trade above near-term prices.

Distributions and structural characteristics

BITI maintains a policy of monthly distributions, with the most recent ex-dividend date on 3 November 2025. Distributions remain nominal, as the fund’s performance is driven by daily inverse futures returns rather than yield. Over 2025, BITI issued small recurring payouts ranging from $0.02 to $0.04 per share, reflecting futures-related adjustments rather than income generation.

While BITI’s gross expense ratio of 0.95% aligns with other leveraged or inverse ETFs, traders should note that holding costs and futures roll effects can erode returns over time. This reinforces that the ETF is designed primarily for short-term tactical positioning rather than long-term holding.

How has BITI performed in 2025?

At the start of 2025, BITI traded near $23, following a steep decline in 2024 when bitcoin rebounded sharply. As bitcoin’s price climbed past $45,000 in early Q1, inverse exposure weighed on the ETF, which fell below $22 by February. However, from March onwards, BITI began to recover as bitcoin’s momentum slowed, with the cryptocurrency consolidating under broader regulatory and macroeconomic pressures.

By April 2025, BITI reached an intraday high above $27, mirroring a pronounced correction in bitcoin as risk appetite declined. This was one of the ETF’s strongest short-term rallies since 2022. Trading volumes remained elevated, frequently exceeding 2 million shares a day, indicating that the ETF continues to serve as a tactical hedge for both institutional and retail traders.

The summer period saw a gradual retracement. As bitcoin stabilised between $50,000 and $60,000, BITI drifted lower to around $18–19 by August, before regaining ground in October and November amid renewed market weakness.

By 14 November 2025, the ETF closed at $21.89, up from $19.35 at the start of the month – a short-term gain of over 13% in line with a modest bitcoin pullback. Volumes averaged more than 5 million shares daily, underscoring continued market engagement during periods of uncertainty.

Overall, the fund’s year-to-date range – between $17 and $27 – illustrates how BITI remains sensitive to short-term changes in bitcoin sentiment rather than its broader trend.

Past performance is not a reliable indicator of future results.

Source: Yahoo Finance, 17 November 2025.

Other bitcoin ETFs available via CFDs

Beyond BITI, several bitcoin ETFs offer different forms of exposure, from spot-backed funds to futures-based products traded on regulated exchanges.

Spot bitcoin ETFs – such as the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) – aim to track bitcoin’s price by holding the cryptocurrency directly in custody. Futures-based ETFs, including the ProShares Bitcoin Strategy ETF (BITO) and VanEck Bitcoin ETF (HODL), hold regulated CME bitcoin futures contracts to reflect price movements without direct ownership.

Past performance is not a reliable indicator of future results.

Key considerations for traders

When evaluating a short bitcoin ETF like BITI, traders should consider that:

• It does not hold bitcoin directly, but tracks short-term futures.
• Returns are calculated daily and may diverge from bitcoin’s cumulative performance.
• Compounding and rolling costs can affect long-term results.
• Inverse ETFs are designed primarily for short-term tactical use.

As with any leveraged or inverse instrument, trading involves significant risk, and positions can move against investors quickly if bitcoin prices rise unexpectedly.

Summary

BITI remains the only US-listed ETF providing direct inverse exposure to bitcoin through CME futures. It offers a convenient and regulated way to hedge against declines in bitcoin or to express a short-term bearish view on its price.

However, it should be viewed as a short-term tactical instrument, not a long-term investment, given its reliance on daily rebalancing and the potential impact of compounding.

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