ProShares Ultra Bitcoin ETF (BITU) Covered Calls

The ProShares Ultra Bitcoin ETF is a geared exchange-traded fund designed to provide two times (2x) the daily performance of the Bloomberg Bitcoin Index. It seeks to magnify the daily returns of Bitcoin through a combination of capital-efficient instruments, including swap agreements and Bitcoin futures contracts. As a daily-resetting leveraged product, BITU is intended as a tactical tool for sophisticated traders and requires active monitoring due to the effects of volatility and compounding.

You can sell covered calls on ProShares Ultra Bitcoin ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for BITU (prices last updated Fri 4:16 PM ET):

ProShares Ultra Bitcoin ETF (BITU) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
13.13 +2.14 13.12 13.14 11.6M - 0.0
Covered Calls For ProShares Ultra Bitcoin ETF (BITU)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 13 1.20 11.94 8.9% 217%
Mar 20 13 1.70 11.44 13.6% 115%
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Extended Business Description

ProShares Ultra Bitcoin ETF is a leveraged investment vehicle that aims to deliver twice (2x) the daily performance of its benchmark, the Bloomberg Bitcoin Index. Launched by ProShares, a pioneer in geared ETF strategies, BITU allows investors to amplify their exposure to Bitcoin’s price movements without the need for direct digital asset custody or complex margin accounts. The fund is primarily designed for short-term tactical use, offering a way to capitalize on intraday volatility or hedge broader portfolio risks.

Core Strategy and Operations

  1. Leveraged Exposure Mechanism: The fund achieves its 2x target by investing in a diversified mix of financial derivatives. This includes cash-settled Bitcoin futures traded on the Chicago Mercantile Exchange (CME) and swap agreements with major global financial institutions like JPMorgan and Barclays, which reference the performance of spot Bitcoin ETFs such as iShares Bitcoin Trust.
  2. Daily Rebalancing and Compounding: BITU resets its exposure at the end of each trading day to maintain its leverage ratio. While this ensures the 2x target for a single day, it can lead to "volatility decay" or tracking divergence over longer periods, meaning the fund’s performance may differ significantly from twice the performance of Bitcoin over weeks or months.
  3. Cash and Collateral Management: To support its derivative positions, the fund maintains a significant portion of its assets in high-quality, short-term cash equivalents and U.S. Treasury bills. These holdings serve as collateral for swaps and generate interest income that helps offset the fund’s expense ratio.

Competitive Landscape

BITU operates in the high-volatility segment of the digital asset market. Its most direct competitor is the 2x Bitcoin Strategy ETF, which also provides 2x leveraged exposure. For traders seeking the opposite side of the market, BITU is often used in tandem with the UltraShort Bitcoin ETF (-2x) or the Short Bitcoin ETF (-1x). In the 2026 market, it also competes for tactical capital with single-stock leveraged funds like the T-Rex 2X Long MSTR Daily Target ETF and the GraniteShares 2x Long COIN Daily ETF.

Strategic Outlook and Innovation

In early 2026, BITU has positioned itself as a critical liquidity instrument for institutional desks navigating a maturing crypto market. A primary strategic focus for the fund is the optimization of its swap counterparty network to minimize tracking error and maximize capital efficiency. Innovation efforts are directed at the burgeoning options market for BITU, allowing traders to execute multi-leg "geared" strategies for enhanced yield or risk mitigation. Furthermore, the fund is benefiting from the 2026 trend of "ETF-anchored demand," where institutional allocators use BITU as a high-beta satellite position within diversified "Model Portfolios." By maintaining a transparent, regulated structure under the Investment Company Act of 1940, BITU aims to remain a preferred choice for investors seeking a professional-grade tool to magnify their conviction in the long-term growth of the decentralized economy.