Navigating the Storm: Is BITO’s Downturn a Buying Opportunity?

The ProShares Bitcoin Strategy ETF (BITO) is currently facing significant market turbulence. A dramatic price collapse in recent weeks has investors questioning whether this prominent Bitcoin futures ETF has reached its end, or if the current period of weakness presents a strategic entry point for those looking to gain exposure.

Recent performance metrics for the BITO ETF paint a challenging picture for bullish investors:

• One-Week Performance: -12.56% (as of November 6, 2025)
• One-Month Performance: -21.38%
• Three-Month Performance: -25.84%

Despite these sharp declines, the fund demonstrates notable long-term resilience. From the start of the year, BITO remains in positive territory with a gain of +8.81% (as of November 3, 2025). Viewed over a one-year horizon, the ETF has delivered a solid return of 48.91%.

Market liquidity remains robust, with trading volume reaching 24.98 million shares on November 6, 2025, though this figure sits slightly below the daily average of 26.93 million. Efficient trading opportunities are indicated by the fund's narrow bid-ask spread.

Market Turbulence: The Catalysts Behind the Sell-Off

Bitcoin experienced a substantial correction in late October and early November 2025, falling below the psychologically significant $100,000 threshold. By November 6, the cryptocurrency was testing critical support levels around $97,000.

Should investors sell immediately? Or is it worth buying ProShares Bitcoin Strategy ETF?

This downturn was primarily triggered by a tariff-related tweet from former President Trump in October, which sparked a rapid wave of liquidations. The selling pressure was further exacerbated by operational challenges at major crypto exchanges, including Binance.

However, positive developments have since emerged. On November 7, 2025, India granted Bitcoin legal property status, a move that could potentially broaden its global acceptance. More significantly, U.S. Bitcoin spot ETFs recorded net inflows of $239.9 million on the same day, effectively ending a six-day streak of outflows.

The Competitive Landscape: Futures vs. Spot ETFs

A fundamental shift has occurred in the Bitcoin ETF arena since the introduction of spot Bitcoin ETFs in early 2024, raising questions about BITO's ability to compete effectively. While BITO continues to rely on futures contracts, its new competitors hold physical Bitcoin, and they do so at significantly lower cost.

• ProShares Bitcoin Strategy ETF (BITO): 0.95% expense ratio, $2.5 billion in assets under management.
• iShares Bitcoin Trust (IBIT): 0.12% expense ratio, commanding a substantial $80.3 billion in assets.
• Fidelity Wise Origin Bitcoin Fund (FBTC): 0.25% expense ratio, with $20.2 billion in assets under management.

These figures tell a clear story: BITO is contending not only with falling prices but also with formidable competition. The critical question for investors is whether the fund's first-mover advantage will be sufficient to ensure its survival in the increasingly crowded Bitcoin ETF market.