The Global X Blockchain & Bitcoin Strategy ETF, commonly known by its ticker BITS, presents a forward-thinking investment solution for those seeking exposure to the rapidly evolving digital asset and blockchain technology landscape. Unlike direct cryptocurrency ownership, BITS offers a regulated, exchange-traded vehicle that combines strategic positions in bitcoin futures with investments in companies advancing blockchain innovation. This structure allows investors to participate in the growth potential of digital assets without the complexities of crypto self-custody or wallet management.
Designed with long-term capital appreciation in mind, BITS stands out in the growing universe of crypto-adjacent financial products by blending active management with diversified exposure. Whether you're a seasoned investor or new to blockchain-related assets, understanding how BITS operates—and the opportunities it presents—can help inform smarter portfolio decisions.
Why Invest in BITS?
Bitcoin Futures Exposure Without Self-Custody
One of the most compelling aspects of BITS is its access to U.S.-listed bitcoin futures contracts. Rather than holding actual bitcoin, the fund takes long positions in regulated futures markets, offering a secure and compliant way to gain economic exposure to bitcoin price movements.
This approach eliminates common barriers associated with direct crypto ownership—such as private key management, exchange risks, and security concerns—while maintaining alignment with bitcoin’s performance trends. For institutional and retail investors alike, this means participation in bitcoin’s upside through a familiar, SEC-reporting investment vehicle.
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Diversified Exposure to the Blockchain Ecosystem
Beyond bitcoin futures, BITS invests in companies positioned to benefit from the broader adoption of blockchain technology and digital assets. These include firms involved in blockchain infrastructure, decentralized finance (DeFi), crypto mining, wallet services, and other innovative applications.
Notably, BITS achieves this exposure both directly and indirectly—sometimes through investments in other exchange-traded funds, such as the Global X Blockchain ETF (BKCH). This layered approach enhances diversification and reduces reliance on any single company or sub-sector within the blockchain space.
Efficient Access in a Single Trade
Investing across multiple blockchain stocks and crypto derivatives can be time-consuming and costly. BITS streamlines this process by bundling both bitcoin futures and blockchain equity exposure into one tradable ETF.
This efficiency translates into lower transaction friction, simplified portfolio tracking, and reduced management overhead—ideal for investors seeking thematic exposure without managing a basket of individual securities.
Investment Objective and Strategy
The primary objective of the Blockchain & Bitcoin Strategy ETF (BITS) is long-term capital appreciation. To achieve this, the fund employs an actively managed strategy that dynamically allocates between:
- Long positions in CME-listed bitcoin futures contracts
- Equity stakes in public companies engaged in blockchain technology and digital asset ecosystems
The fund does not invest directly in bitcoin or other cryptocurrencies, which helps maintain compliance with current U.S. securities regulations. Instead, it leverages regulated financial instruments to mirror exposure while prioritizing transparency and investor protection.
Portfolio managers regularly assess macroeconomic conditions, regulatory developments, and technological advancements to adjust allocations accordingly—ensuring the fund remains responsive to market shifts.
Key Features at a Glance
- Actively Managed: Professional oversight ensures timely responses to market dynamics.
- Regulated Structure: Invests via compliant futures markets and public equities.
- No Direct Crypto Holding: Avoids custody challenges while still capturing price exposure.
- Thematic Focus: Targets long-term growth in blockchain innovation and digital assets.
- Transparent Reporting: Daily NAV and market price data available for investor review.
Understanding Performance and Holdings
While detailed performance history and top holdings data are subject to daily updates and market fluctuations, investors can expect BITS to reflect movements in both the bitcoin futures market and the performance of underlying blockchain-focused equities.
Because the fund uses futures contracts, its returns may differ from spot bitcoin prices due to factors like contango or backwardation in the futures curve. Additionally, since part of the portfolio is invested in other ETFs, investors gain indirect exposure rather than direct stock ownership in certain cases.
For up-to-date information on net asset value (NAV), market price changes, historical returns, and top holdings, investors are encouraged to consult official fund reports published by the issuer.
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Frequently Asked Questions (FAQ)
Q: Does BITS hold actual bitcoin?
A: No. BITS does not invest directly in bitcoin or any cryptocurrency. Instead, it gains exposure through U.S.-listed bitcoin futures contracts and investments in blockchain-related companies or ETFs.
Q: How does investing in bitcoin futures differ from buying bitcoin on an exchange?
A: Futures contracts allow investors to speculate on bitcoin’s future price without owning the asset. This method operates within regulated markets, offering greater oversight and eliminating custody risks associated with exchanges or wallets.
Q: Is BITS suitable for long-term investors?
A: Yes. The fund is designed for investors seeking long-term capital appreciation tied to the growth of blockchain technology and digital assets. However, as with any thematic investment, it carries higher volatility and should be considered within a diversified portfolio.
Q: What types of companies does BITS invest in?
A: BITS targets firms involved in blockchain development, crypto mining, decentralized applications (dApps), smart contracts, digital wallets, and related infrastructure. These may include both direct equity investments and indirect exposure via other ETFs.
Q: How often is the portfolio rebalanced?
A: As an actively managed fund, BITS undergoes regular review and rebalancing based on market conditions, regulatory changes, and strategic objectives set by the portfolio management team.
Q: Can I trade BITS like a stock?
A: Yes. BITS trades on major U.S. exchanges during regular market hours, just like any other ETF or stock. Investors can buy and sell shares through their brokerage accounts.
Final Thoughts
The Blockchain & Bitcoin Strategy ETF (BITS) represents a balanced entry point into the high-potential—but often complex—world of digital assets. By combining regulated bitcoin futures with curated exposure to blockchain innovation, it offers a compliant, efficient, and strategically managed investment vehicle.
For investors navigating the intersection of traditional finance and emerging technology, BITS provides a bridge built on transparency, regulatory adherence, and long-term vision.
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