2x Bitcoin Strategy ETF

Frequently Asked Questions About BITX

What does BITX invest in?

BITX aims to provide 2x daily exposure to bitcoin futures. The fund seeks to track the price movement of bitcoin futures traded on the CME Futures Exchange for a single day. The fund buys cash-settled Bitcoin futures contracts and will roll the contracts on a monthly basis, as they near expiration. The expiring contracts are replaced with the next month contracts. The final trade date each month is the last Friday of the contract month. On day T-2 at market close, the index is 0% in the expiring futures contract and 100% in the next futures contract. Futures contracts can and often do trade in backwardation, meaning the costs of rolling contracts will reduce returns. The index itself is price weighted and does not rebalance. As a result, the return of BITX shares can vary significantly from 2x exposure, if held for longer than a day. As a geared product with daily resets, the fund is designed as a short-term trading tool and not a long-term investment vehicle.

What is the expense ratio of BITX?

2x Bitcoin Strategy ETF (BITX) charges an expense ratio of 2.75%. This is the annual fee deducted from fund assets to cover management and operations.

Is BITX a good long-term hold?

BITX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does BITX's daily reset work?

BITX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is BITX?

2x Bitcoin Strategy ETF (BITX) manages $1.29B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is BITX actively managed or an index fund?

BITX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.