ProShares UltraShort Bitcoin ETF (SBIT) Covered Calls

The ProShares UltraShort Bitcoin ETF is a leveraged inverse fund that seeks daily investment results corresponding to two times the inverse (-2x) of the daily performance of the Bloomberg Bitcoin Index. Designed for sophisticated investors, the fund provides a tactical way to profit from Bitcoin price declines or hedge digital asset exposure. As a daily-resetting product, it is intended for short-term use and requires active monitoring due to the effects of compounding and volatility.

You can sell covered calls on ProShares UltraShort 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 SBIT (prices last updated Fri 4:16 PM ET):

ProShares UltraShort Bitcoin ETF (SBIT) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
59.37 -15.10 59.31 59.55 5.2M - 0.0
Covered Calls For ProShares UltraShort Bitcoin ETF (SBIT)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 60 4.90 54.65 9.0% 219%
Mar 20 60 6.90 52.65 13.1% 111%
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Extended Business Description

ProShares UltraShort Bitcoin ETF is a geared exchange-traded fund designed to provide inverse leveraged exposure to the Bitcoin market. The fund seeks to deliver twice the inverse (-2x) of the daily return of its benchmark, the Bloomberg Bitcoin Index. SBIT does not short Bitcoin directly; instead, it utilizes a combination of swap agreements and money market instruments to achieve its bearish investment objective, offering a liquid alternative to traditional shorting methods.

Core Strategy and Operations

  1. Inverse Leveraged Exposure: The fund targets a -200% daily correlation to Bitcoin. This means if Bitcoin drops 1% on a given day, SBIT is designed to rise approximately 2% (before fees and expenses). Conversely, if Bitcoin rises 1%, the fund is expected to fall by 2%.
  2. Derivatives-Based Portfolio: To maintain its target exposure, SBIT enters into swap agreements with major financial institutions, using the price movements of spot Bitcoin ETFs or Bitcoin futures as reference assets. The fund’s cash balances are typically held in high-quality, short-term U.S. Treasury bills.
  3. Daily Rebalancing: Like all geared ETFs, SBIT rebalances its exposure at the end of each trading day. This ensures the -2x target is reset daily but can result in performance that differs significantly from -2x the index return over longer holding periods, particularly in volatile markets.

Competitive Landscape

SBIT operates in the specialized "bear" segment of the digital asset market. Its primary internal competitor is the ProShares Short Bitcoin ETF, which offers -1x (non-leveraged) inverse exposure. In the leveraged space, it competes for tactical capital with the GraniteShares 2x Short COIN Daily ETF, which targets Coinbase stock. For investors seeking the opposite (bullish) side of the trade, SBIT is often used as a hedge against long positions in the 2x Bitcoin Strategy ETF or spot-based products like the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund.

Strategic Outlook and Innovation

In early 2026, SBIT has emerged as a high-volume vehicle for traders navigating a "risk-off" macro environment characterized by hawkish central bank policy and shifting liquidity. A primary strategic focus for ProShares is ensuring the fund provides deep liquidity for institutional desks that use SBIT as a cost-effective alternative to expensive margin-based shorting. Innovation in the space is focused on the expansion of the "inverse options" ecosystem, allowing traders to buy puts or sell calls on SBIT to further fine-tune their bearish digital asset strategies. As Bitcoin matures into a standard macro asset, SBIT is increasingly utilized by asset managers to temporarily reduce beta in diversified portfolios during periods of heightened crypto volatility. By maintaining a transparent and efficient swap-based structure, the fund seeks to remain the benchmark for investors looking to capitalize on downward trends in the digital asset economy.