On June 30, 2025, the Global X Blockchain & Bitcoin Strategy ETF (BITS) announced a semi-annual distribution of $0.2562 per share. This payout is part of the fund’s ongoing strategy to deliver income to shareholders while providing exposure to both bitcoin futures and blockchain industry leaders.

How Does BITS Work?

BITS is an actively managed ETF that invests in a mix of U.S.-listed bitcoin futures and equities of blockchain companies—including miners, infrastructure providers, and digital asset innovators. The fund does not hold bitcoin directly but achieves its exposure through futures and related ETFs. As of June 2025, BITS manages over $31 million in assets and offers a forward dividend yield above 30%, reflecting the high volatility and income-generating potential of its underlying assets.

Recent Dividend History

Dividends can vary widely due to the ETF’s exposure to volatile crypto assets and futures contracts.

Why Such High Yields and Volatility?

• Income Source: BITS generates income from gains on bitcoin futures and dividends from blockchain-related stocks.

• Volatility: The fund’s yield can swing dramatically—recent payouts ranged from just a few cents to over $19 per share—mirroring the unpredictable nature of crypto markets.

• Tax Treatment: Distributions are taxed as ordinary income or capital gains, depending on the investor’s situation.

Expert Opinion: Should You Consider BITS for Income or Growth?

“BITS offers a unique way to tap into crypto’s upside and earn distributions, but the high yield comes with significant risk. The fund’s income can spike or drop sharply depending on bitcoin’s price and futures market dynamics. For investors, BITS may suit a diversified portfolio seeking both growth and income from digital assets—but only those comfortable with volatility should consider it.”

Would you add a crypto ETF like BITS to your portfolio, or is the volatility too much? Share your view in the comments below!