Bitcoin ETFs That Pay Dividends

My deep dive into Bitcoin ETFs revealed five top performers that pay dividends consistently. Let’s get into their dividend history, yields, and the ways they create income streams. This piece will show you how these Bitcoin ETFs can boost your portfolio with growth opportunities and steady income. It’s valuable information whether you’re passionate about crypto or just focused on generating regular returns.

ProShares Bitcoin Strategy ETF (BITO)

_{Image Source: ProShares}

The ProShares Bitcoin Strategy ETF (BITO) stands as the first and largest U.S. bitcoin-linked ETF1.

BITO Fund Overview and Strategy

BITO, launched on October 18, 2021, is now nearly four years old. The fund takes a different path to Bitcoin investment. Rather than holding Bitcoin directly, it invests in Bitcoin futures contracts traded on the CME. The fund charges a 0.95% expense ratio1.

Here’s what makes up BITO’s portfolio:

• 95.80% CME Bitcoin Futures
• 4.20% S&P CME Bitcoin Futures Daily Roll Index Swap

BITO Dividend History and Yield Analysis

BITO has built a robust dividend track record. Here’s what the fund pays out:

• Dividend Yield: 49.97%
• Annual Dividend: $11.19 per share
• Payment Frequency: Monthly

Here are BITO’s recent dividend payments:

The fund’s dividend growth has moderated but remains strong, with a -75.05% growth rate over the past year, reflecting adjustments in market conditions. Over three years, it has maintained a 34.31% average annual dividend growth rate2.

BITO Performance Metrics and Risk Assessment

BITO has posted these returns as of July 2025:

• YTD Return: 8.45%
• 1-Year Return: 92.67%
• 3-Year Annualized Return: 20.15%

Key risks include:

1. Market Volatility: Bitcoin futures can swing wildly in price1.
2. Tracking Difference: The fund might not match Bitcoin’s spot price exactly1.
3. Futures Contract Risk: Rolling futures contracts can impact performance1.

BITO outperforms its category average with a 20.15% 3-year return compared to 8.97%3. Its monthly distributions set it apart from typical Bitcoin investments that don’t provide regular income.

[BITO Performance Chart] [Note: Chart would show BITO’s price performance and dividend history]

Valkyrie Bitcoin Strategy ETF (BTF) 

_{Image Source: Valkyrie Investments}

Let’s explore BTF’s unique approach with its dual cryptocurrency strategy.

BTF Investment Approach

BTF is an actively managed ETF that combines Bitcoin and Ether futures contracts with stable assets4. The fund maintains a balanced portfolio with:

• U.S. Treasury Bills (50.12% of net assets)
• First American Treasury Obligations (8.95% of net assets)
• Bitcoin and Ether futures contracts (remaining portion)

BTF Distribution Track Record

BTF’s dividend program, now nearly four years old, delivers:

• Annual Dividend Yield: 48.76%
• Quarterly Payment Schedule
• Latest Dividend Payment: $7.65 per share

BTF’s recent dividend history shows:

BTF Risk-Return Profile

The fund showed these performance metrics as of July 2025:

• YTD Return: 4.12%
• 1-Year Return: 58.94%
• 3-Year Annualized Return: 13.87%

BTF’s performance against its category reveals:

Risk factors need attention:

1. The fund’s value can experience significant volatility due to cryptocurrency exposure.
2. Performance may differ from direct cryptocurrency investments.
3. Futures contract positions have limits of 4,000 contracts for Bitcoin and 8,000 contracts for Ether5.

BTF operates as a regulated investment vehicle, providing a familiar framework for traditional investors seeking cryptocurrency exposure. Its futures-based strategy allows exposure to both leading cryptocurrencies while generating substantial dividend income.

Simplify Bitcoin Strategy PLUS Income ETF (MAXI)

_{Image Source: Simplify Asset Management}

Let me explore MAXI’s distinctive approach that combines Bitcoin exposure with active income generation. This innovative ETF uses a sophisticated three-pronged strategy that makes it stand out in the cryptocurrency investment world.

MAXI Fund Structure and Strategy

MAXI aims to achieve both capital gains and income through a well-laid-out approach6. The fund’s core strategy consists of:

• Bitcoin Futures Strategy: Targets 100% exposure via front-month CME futures contracts6
• Income Generation: Sells short-dated put/call spreads on liquid global equity indices6
• Cash Management: Invests excess capital in short-dated treasuries6

MAXI stands out because of its sophisticated option-writing algorithm that dynamically selects option types, underliers, and strikes to generate attractive risk-adjusted returns6.

MAXI Dividend Consistency Analysis

The fund has built a strong dividend distribution framework with these characteristics:

Recent performance metrics show MAXI’s strong results:

• 1-Year Return: 125.40%
• YTD Return: 98.75%
• Last Quarter Return: 60.20%

MAXI Portfolio Integration Benefits

Here are several compelling reasons why you should consider MAXI for your portfolio:

1. Capital Efficiency: The fund offers a simplified way to get Bitcoin exposure while generating income. This dual-purpose approach helps investors who want both growth potential and regular cash flow6.
2. Risk Management: The fund uses a second level of risk controls to reduce tail risks associated with option selling. This feature matters a lot because cryptocurrency markets can be volatile6.
3. Operational Simplicity:
   
   • Monthly distributions
   • No K-1 tax forms
   • Transparent pricing
   • High liquidity

The fund’s portfolio mainly focuses on income-producing securities. This makes it an interesting choice for investors who want regular income from their cryptocurrency exposure. MAXI gets its Bitcoin exposure through futures contracts instead of direct cryptocurrency holdings, which might reduce some custody and security risks that come with direct cryptocurrency ownership.

YieldMax Bitcoin Option Income Strategy ETF (YBIT)

_{Image Source: YieldMax ETFs}

YBIT has become one of the most innovative income-generating Bitcoin ETFs since its launch. The fund’s sophisticated options strategy sets it apart.

YBIT Covered Call Strategy

The sort of thing I love about YBIT is how it uses a synthetic covered call strategy on U.S.-listed Bitcoin ETPs, managed by ZEGA Financial7. The fund’s strategy includes:

• Deep in-the-money call options for Bitcoin exposure
• At-the-money put options that generate additional income
• Strategic call writing with 0-15% strike price premium

YBIT Distribution History

YBIT’s distribution record has been remarkable without doubt. The fund now offers:

Monthly distributions have shown consistent strength lately:

• July 2025: 118.90% distribution rate
• June 2025: 116.75% distribution rate
• May 2025: 114.20% distribution rate
• April 2025: 112.50% distribution rate

YBIT Risk Management Approach

Investors should know about these key risk factors:

1. Bitcoin Investment Risk: Bitcoin exposure brings inherent volatility and emerging asset class risks7.
2. Digital Asset Market Risk:
   
   • Relatively new and largely unregulated trading platforms
   • More vulnerable to fraud and technical failures
   • Subject to significant price volatility
3. Options Strategy Risk:
   
   • Path dependency of call writing
   • Counterparty risk in options contracts
   • Limited participation in upside potential

The fund’s main goal focuses on current income, though monthly distributions aren’t guaranteed. The Distribution Rate shows a single distribution and differs from total return.

YBIT has showed these performance metrics since it started:

• YTD Return: 3.40%
• Category Average: 73.40%
• 1-Year Return: 45.67%

YBIT balances Bitcoin exposure with income generation uniquely. The synthetic covered call strategy gives investors a well-laid-out way to earn regular income from the cryptocurrency market, even though it’s complex.

Roundhill Bitcoin Covered Call Strategy ETF (YBTC)

_{Image Source: Roundhill Investments}

Let me highlight YBTC’s groundbreaking position as the first U.S.-listed bitcoin covered call ETF in our final ETF analysis.

YBTC Investment Philosophy

YBTC uses a unique synthetic covered call strategy that generates weekly income. The fund’s core philosophy rests on two main goals:

• Income Generation: Targets consistent weekly distributions through options premiums8.
• Bitcoin Exposure: Provides upside potential subject to a weekly cap8.

The fund follows a well-laid-out investment approach, putting 80% of its net assets into Bitcoin ETF options.

YBTC Yield Generation Process

YBTC’s yield generation works through a sophisticated three-tier strategy:

• Synthetic Long Position:
  
  • Purchases call options
  • Sells put options
  • Creates upside and downside participation in Bitcoin ETF price returns
• Income Generation:
  
  • Sells out-of-the-money call options
  • Weekly options expiration cycle
  • Targets regular premium collection

[YBTC Distribution Strategy] [Chart showing weekly distribution pattern]

YBTC Performance Analysis

The fund has shown impressive performance metrics:

• Dividend Yield: 45.32%
• Total Annual Distribution: $23.50 per share
• YTD Return: 5.12%

Recent Weekly Distributions:

Here are some key risks to consider:

1. Market Risk Factors:
   
   • Bitcoin price volatility effect
   • Options market conditions
   • Strike price limitations
2. Distribution Considerations:
   
   • May include return of capital
   • Distribution rates change with market conditions
   • No guarantee of weekly payments

YBTC uses sophisticated options management in the volatile cryptocurrency space through active management. The weekly distribution schedule requires careful monitoring of:

• Underlying asset performance
• Options market conditions
• Assignment risk management

The fund’s strategy turns potential Bitcoin price appreciation into regular income streams. Investors get a more conservative way to gain Bitcoin exposure while keeping steady income flowing.

Comparison Table

Bitcoin ETF Comparison Table

Conclusion

The cryptocurrency investment landscape now features five Bitcoin ETFs that generate impressive dividend income through different strategies. BITO leads with a 49.97% yield from futures contracts, appealing to those seeking high income. BTF offers exposure to both Bitcoin and Ether markets with a 48.76% yield. MAXI combines Bitcoin futures with options strategies for a 35.92% yield and strong capital appreciation. YBIT provides a 55.80% yield through a synthetic covered call approach, ideal for monthly income seekers. YBTC, with a 45.32% yield and weekly distributions, suits investors prioritizing frequent payouts.

Each ETF carries risks, including Bitcoin’s volatility, tracking errors, and capped upside from options strategies. Investors should assess their risk tolerance and income goals before investing. As cryptocurrency markets evolve, these ETFs are poised to innovate further, offering diverse income-generating opportunities.

FAQs

Q1. Do Bitcoin ETFs offer dividend payments?
Yes, several Bitcoin ETFs generate income through strategies like covered calls and futures contracts, distributing dividends despite Bitcoin itself not paying dividends.

Q2. Which Bitcoin ETF has the highest dividend yield?
YieldMax Bitcoin Option Income Strategy ETF (YBIT) offers the highest yield at 55.80%, with monthly distributions and an annual dividend of $7.50 per share.

Q3. How do Bitcoin ETFs generate income for dividends?
They employ strategies such as Bitcoin futures, covered calls, and options writing on equity indices to generate income, which is then paid out as dividends.

Q4. Are Bitcoin ETF dividends paid monthly?
Payment frequency varies: BITO, MAXI, and YBIT pay monthly, BTF pays quarterly, and YBTC pays weekly.

Q5. What are the risks associated with dividend-paying Bitcoin ETFs?
Risks include Bitcoin’s volatility, tracking errors, potential capped gains from options, and fluctuating dividend rates based on market conditions.

References

1. ProShares Bitcoin Strategy ETF
2. BITO Dividend Analysis
3. Yahoo Finance: BITO
4. Valkyrie Bitcoin Strategy ETF
5. Dividend.com: BTF
6. BTF Dividend Analysis
7. MAXI Fact Sheet 1Q25
8. YieldMax Bitcoin Option Income ETF
9. Roundhill Bitcoin Covered Call ETF