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BITO Bitcoin Strategy ETF: Breaking Down the 56% Dividend

BITO Bitcoin Strategy ETF: Breaking Down the 56% Dividend, But Will It Hold?

The ProShares Bitcoin Strategy ETF (BITO) recently declared a $1.68 dividend, generating significant buzz around its seemingly high yield. While the headline number might be eye-catching, it's crucial to understand the underlying composition of the ETF.

Bitcoin Dividend

Here's a breakdown of BITO's holdings:

  • BITO ETF Composition:

  • 58.69% - CME Bitcoin Futures Non-Equity Index 31/MAY/2024 (BTCK4)

  • 37.95% - CME Bitcoin Futures Non-Equity Index 28/JUN/2024 (BTCM4)

  • 3.34% - S&P CME Bitcoin Futures Daily Roll Index Swap w/SG Societe Generale

It's important to note that the high dividend yield isn't solely derived from traditional interest payments. The value also reflects the current price appreciation of Bitcoin and the structure of the ETF's holdings, which leverage futures contracts.


Therefore, while the 59% dividend yield might seem substantial, it's essential to consider the underlying composition of the ETF and the factors contributing to this return.


Additional Performance Data:

  • Year-to-Date Return: 64%

  • 1-Year Return: 128%

These additional figures highlight the strong performance of the BITO ETF year-to-date and over the past year.

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