The 2x Bitcoin Strategy ETF (NYSE:BITX ) is a leveraged exchange-traded fund (ETF) that aims to deliver twice the daily return of Bitcoin (BTC +1.44%) before fees and expenses.
This means that if Bitcoin goes up 10%, BITX aims to go up 20%. If Bitcoin's price falls 10%, BITX drops 20% -- but only for a single day. It's important to note that this leverage is designed for daily price movements and may not provide the same 2x return over longer periods.
The ETF is operated by Volatility Shares Inc., a registered investment advisor and commodity pool operator. The company specializes in creating and managing leveraged ETFs that seek to deliver multiple times the daily performance of specific indexes or underlying assets, such as Bitcoin futures or VIX futures.
Here’s everything you need to know if you are considering investing in the 2x Bitcoin Strategy ETF.
What is 2x Bitcoin Strategy ETF?
Launched in June 2023, the 2x Bitcoin Strategy ETF seeks to achieve twice (2x) the daily performance of the CME Bitcoin Futures Daily Roll Index. It does so by investing in cash-settled Bitcoin futures contracts and rolling them forward as they approach expiration. The fund is designed as a short-term trading tool and isn't an ETF for long-term investors.
The 2x Bitcoin Strategy ETF invests in cash-settled Bitcoin futures contracts, not in actual Bitcoin. The ETF uses leverage to amplify the daily returns of Bitcoin futures, aiming for a 2x return. It resets its leverage back to 2x daily. This means its returns for periods longer than a single day will likely differ from the expected 2x return.
It rolls its futures contracts forward every month. As contracts near expiration, the fund replaces expiring contracts with the next month's contracts.
Due to the daily resetting nature and leverage, BITX is subject to leverage compounding and volatility drag. In other words, if Bitcoin futures trend steadily upward over multiple days, compounding can cause BITX’s returns to exceed its 2x daily target. However, in volatile markets, daily resetting can cause BITX to underperform over time, even if Bitcoin futures end up flat or higher.
Exchange-Traded Fund (ETF)
How to buy 2x Bitcoin Strategy ETF
Buying shares of the 2x Bitcoin Strategy ETF is fast and easy. Here's what you need to do.
- Step 1: Open your brokerage app: Log into your brokerage account where you handle your investments.
- Step 2: Search for the ETF: Enter the ticker (BITX) or ETF name into the search bar to bring up the ETF's trading page.
- Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
- Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Step 5: Submit your order: Confirm the details and submit your buy order.
- Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Holdings of 2x Bitcoin Strategy ETF
The 2x Bitcoin Strategy ETF held approximately $1.98 billion in net assets as of early 2025. It aims to deliver twice the daily performance of an index based on rolling Bitcoin futures. To maintain its 2x daily exposure, the fund adjusts its holdings daily, buying or selling futures contracts as needed to account for market movements, as well as investor inflows or redemptions.
The fund primarily holds cash-settled Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME), along with cash-like instruments or high-quality securities used as collateral. It regularly rolls its futures positions, typically moving from contracts with a near-term expiration to longer-dated contracts to avoid holding futures that are about to expire.
The 2x Bitcoin Strategy ETF is classified as a non-diversified fund, meaning it can concentrate a large portion of its assets in Bitcoin futures. Unlike many ETFs, it doesn't need to spread investments broadly across many asset types.
The ETF keeps most of its money in cash for safety and uses futures contracts to get 2x exposure to Bitcoin, so its futures positions can add up to more than 100% of its assets.
As of this writing in April 2025, the ETF’s holdings include 31.69% of its net assets in CME Bitcoin futures expiring in April 2025, 168.29% in CME Bitcoin futures expiring in May 2025, and 99.99% in cash-like instruments.
Should I invest in 2x Bitcoin Strategy ETF?
If you're considering an investment in the 2x Bitcoin Strategy ETF, there are a few factors to consider. The ETF is designed for aggressive traders who are comfortable with high volatility and seek to capitalize on Bitcoin futures' performance. It's not appropriate for long-term investors or those who prefer stability.
Bitcoin futures are derivatives that allow investors to speculate on Bitcoin’s price without owning the cryptocurrency. Like other futures contracts, they're leveraged, which amplifies both profits and losses.
The 2x Bitcoin Strategy ETF aims to provide twice the daily performance of Bitcoin futures, but it is a short-term trading tool, not a long-term investment. The ETF’s daily rebalancing process is designed to maintain this 2x exposure, but it also comes with significant risk.
The value of the ETF can fluctuate dramatically, both on the upside and downside, due to its use of leverage. Over time, the ETF can experience volatility drag, where its returns may fall short of the 2x target, especially in choppy or sideways markets.
Additionally, Bitcoin futures come with their own risks, such as tracking errors in ETFs that hold them, liquidity issues, and potential difficulty in closing positions. This ETF is specifically intended for those focused on short-term gains and shouldn't be considered a buy-and-hold investment.
Does 2x Bitcoin Strategy ETF pay a dividend?
Yes, the 2x Bitcoin Strategy ETF pays a dividend, which it distributes on a monthly basis. Its current yield is 17.5%. Dividends are the result of interest earned on U.S. Treasuries and other cash-like instruments, not from Bitcoin or Bitcoin futures.
What is 2x Bitcoin Strategy ETF’s expense ratio?
The 2x Bitcoin Strategy ETF has an expense ratio of 1.85%. This is on the high end, and means that a $10,000 investment in the ETF would incur an annual fee of approximately $185.
Expense Ratio
Historical performance of 2x Bitcoin Strategy ETF
The 2x Bitcoin Strategy ETF aims to provide investors with twice (2x) the daily performance of Bitcoin, specifically the S&P CME Bitcoin Futures Daily Roll Index. This is achieved through daily rolling of Bitcoin futures contracts, with the fund adjusting its position to maintain the 2x leverage. Let’s see how the ETF has delivered on that objective since its inception in 2023.
Time Period | Quarter | 1 Year | Since Inception |
|---|---|---|---|
Fund NAV | -30.72% | -21.74% | 177.76% |
Market Price | -30.24% | -21.63% | 178.23% |
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The bottom line on 2x Bitcoin Strategy ETF
The 2x Bitcoin Strategy ETF seeks to deliver two times the daily performance of the Bitcoin futures index, meaning its gains and losses are magnified. The fund's performance is reset each day; it doesn't track the cumulative performance of Bitcoin over a longer period.
The ETF primarily invests in cash-settled Bitcoin futures contracts, which are derivatives that represent the price of Bitcoin at a future date. The fund is not diversified, focusing primarily on Bitcoin futures.
As a result, the 2x Bitcoin Strategy ETF is highly volatile. The fund is intended for short-term trading rather than investors who hold investments for extended periods. The compounding effect of daily leverage can amplify gains and losses, potentially leading to significant losses over time.
For investors who understand the risks of leverage and high volatility and want to put cash to work in a short-term trading tool, perhaps this ETF is one to consider. However, investors seeking long-term capital appreciation or those who are risk-averse may do well to consider other sectors or investments to put their capital to work.
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