The Top 5 Bitcoin ETFs With Proven Dividend Track Records – 2025

Want to earn regular income from Bitcoin ETFs? You’re definitely not the only one.

Bitcoin doesn’t pay dividends, but several Bitcoin ETFs now offer regular payouts to investors. These smart funds generate income from their Bitcoin holdings through covered calls and yield optimization strategies.

My deep dive into Bitcoin ETFs revealed 5 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}

Let’s get into ProShares Bitcoin Strategy ETF (BITO), which stands as the first and largest U.S. bitcoin-linked ETF1.

BITO Fund Overview and Strategy

BITO is a 2-year old fund that launched on October 18, 2021. The fund takes a different path to Bitcoin investment. Rather than holding Bitcoin directly, it puts money into Bitcoin futures contracts23. The fund charges a 0.95% expense ratio1.

Here’s what makes up BITO’s portfolio:

• 96.12% CME Bitcoin Futures
• 4.00% S&P CME Bitcoin Futures Daily Roll Index Swap1

BITO Dividend History and Yield Analysis

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

• Dividend Yield: 58.46%
• Annual Dividend: $14.03 per share
• Payment Frequency: Monthly24

Here are BITO’s recent dividend payments:

The fund’s dividend growth stands out with a 352.21% jump in the last year24.

BITO Performance Metrics and Risk Assessment

BITO has posted these returns:

• YTD Return: 4.21%
• 1-Year Return: 100.37%
• 3-Year Return: 22.39%25

Notwithstanding that, you should know about these risks:

1. Market Volatility: Bitcoin futures can swing wildly in price1.
2. Tracking Difference: The fund might not match Bitcoin’s spot price exactly23.
3. Futures Contract Risk: Rolling futures contracts can change how well the fund tracks Bitcoin’s price1.

BITO beats its category average with a 22.39% 3-year return compared to 9.23%25. On top of that, it pays monthly distributions, which sets it apart from typical Bitcoin investments that don’t give regular income.

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

Valkyrie Bitcoin Strategy ETF (BTF)

_{Image Source: CoinShares}

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

BTF Investment Approach

We focused on BTF as an actively managed ETF that combines Bitcoin and Ether futures contracts in its portfolio4. The fund maintains a balanced portfolio with:

• U.S. Treasury Bills (49.35% of net assets)5
• First American Treasury Obligations (9.12% of net assets)5
• Bitcoin and Ether futures contracts (remaining portion)

BTF Distribution Track Record

BTF’s dividend program is 2 years old. The fund delivers:

• Annual dividend yield: 49.55%6
• Quarterly payment schedule6
• Latest dividend payment: $7.43 per share7

BTF’s recent dividend history shows:

BTF Risk-Return Profile

The fund showed strong performance metrics:

• YTD Return: 3.75%8
• 1-Year Return: 63.28%8
• 3-Year Return: 14.29%8

BTF’s performance against its category reveals:

Risk factors need attention:

1. The fund’s value can experience significant volatility
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 Ether9

[BTF Performance Chart] [Chart showing BTF’s historical performance and dividend distributions]

The fund operates as a regulated investment vehicle that provides a familiar framework for traditional investors who seek cryptocurrency exposure. BTF’s 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 approach2. The fund’s core strategy consists of:

• Bitcoin Futures Strategy: Targets 100% exposure via front-month CME futures contracts2
• Income Generation: Sells short-dated put/call spreads on liquid global equity indices2
• Cash Management: Invests excess capital in short-dated treasuries2

MAXI stands out because of its sophisticated option-writing algorithm that dynamically selects option types, underliers, and strikes to generate attractive risk-adjusted returns2.

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: 134.2%10
• YTD Return: 110.5%10
• Last Quarter Return: 65.9%10

MAXI Portfolio Integration Benefits

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

1. Capital Efficiency: The fund offers a simplified way to get Bitcoin exposure while generating income2. This dual-purpose approach helps investors who want both growth potential and regular cash flow.

2. Risk Management: The fund uses a second level of risk controls to reduce tail risks associated with option selling2. This feature matters a lot because cryptocurrency markets can be volatile.

3. Operational Simplicity: The ETF structure offers:

   • Monthly distributions
   • No K-1 tax forms2
   • Transparent pricing
   • High liquidity

[MAXI Strategy Visualization] [Chart showing the three-pronged strategy implementation]

The fund’s portfolio mainly focuses on income-producing securities12. This makes it an interesting choice for investors who want regular income from their cryptocurrency exposure. The fund’s active management style allows quick strategy adjustments based on market conditions.

MAXI gets its Bitcoin exposure through futures contracts instead of direct cryptocurrency holdings13. This approach gives regulated exposure to Bitcoin and might reduce some custody and security risks that come with direct cryptocurrency ownership.

[Performance Chart showing MAXI’s price and dividend history]

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 ETPs3. 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 premium14

ZEGA Financial manages this complex options framework actively and encourages engagement to maximize current income and Bitcoin exposure3.

YBIT Distribution History

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

Monthly distributions have shown consistent strength lately:

• December 2024: 115.71% distribution rate
• November 2024: 65.28% distribution rate
• October 2024: 83.20% distribution rate
• September 2024: 83.67% distribution rate15

[YBIT Distribution History Chart] [Chart showing monthly distribution patterns]

YBIT Risk Management Approach

Investors should know about these most important risk factors:

1. Bitcoin Investment Risk: Bitcoin exposure brings inherent volatility and emerging asset class risks3.

2. Digital Asset Market Risk: Trading platforms for digital assets are:

   • Relatively new and largely unregulated
   • More vulnerable to fraud and technical failures
   • Subject to significant price volatility3

3. Options Strategy Risk: These factors affect the fund’s performance:

   • Path dependency of call writing
   • Counterparty risk in options contracts
   • Limited participation in upside potential3

The fund’s main goal focuses on current income, though monthly distributions aren’t guaranteed16. The Distribution Rate shows a single distribution and differs from total return3.

[YBIT Performance Analysis] [Chart displaying price performance versus distribution yield]

YBIT has showed these performance metrics since it started:

• YTD Return: +3.40%
• Category Average: +73.40%17

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 ETF18 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 premiums
• Bitcoin Exposure: Provides upside potential subject to a weekly cap18

The fund follows a well-laid-out investment approach. It puts 80% of its net assets into Bitcoin ETF options19. This allocation shows the fund’s steadfast dedication to keeping substantial market exposure.

YBTC Yield Generation Process

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

1. Synthetic Long Position

   • Purchases call options
   • Sells put options
   • Creates upside and downside participation in Bitcoin ETF price returns20

2. Income Generation

   • Sells out-of-the-money call options
   • Weekly options expiration cycle
   • Targets regular premium collection18

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

YBTC Performance Analysis

The fund has showed impressive performance metrics:

• Current Distribution Rate: 43.16%21
• Total Annual Distribution: $22.15 per share21

Recent Monthly Distributions:

Here are some key risks to think over:

1. Market Risk Factors:

   • Bitcoin price volatility effect
   • Options market conditions
   • Strike price limitations18

2. Distribution Considerations:

   • May include return of capital
   • Distribution rates change with market conditions
   • No guarantee of weekly payments22

YBTC uses sophisticated options management in the volatile cryptocurrency space through active management22. The weekly distribution schedule needs careful monitoring of:

• Underlying asset performance
• Options market conditions
• Assignment risk management22

[YBTC Performance Chart] [Chart showing price performance versus standard]

The fund’s strategy turns potential Bitcoin price appreciation into regular income streams18. 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 tops the list with a 58.46% yield from futures contracts. MAXI takes an integrated approach by combining Bitcoin exposure with active income generation through three distinct methods.

These funds cater to different investment goals. BITO appeals to investors who want the highest possible yields. BTF gives investors exposure to both Bitcoin and Ether markets. MAXI uses sophisticated options strategies to generate returns. YBIT targets steady monthly income streams. YBTC pays out distributions weekly.

These ETFs come with their own set of risks. The volatile nature of Bitcoin prices affects returns significantly. Options-based strategies might cap potential gains when markets rally strongly. You should evaluate your risk tolerance and income requirements carefully before choosing any of these funds.

The future looks promising for Bitcoin ETFs as they develop new income-generation strategies. More opportunities for dividend-focused crypto investments will emerge as cryptocurrency markets mature and options trading expands.

FAQs

Q1. Do Bitcoin ETFs offer dividend payments? Yes, several Bitcoin ETFs offer dividend payments. While Bitcoin itself doesn’t pay dividends, some ETFs use strategies like covered calls and yield optimization to generate income from their Bitcoin holdings, which they distribute to investors as dividends.

Q2. Which Bitcoin ETF has the highest dividend yield? Based on the information provided, the ProShares Bitcoin Strategy ETF (BITO) currently offers the highest dividend yield at 58.46%, with monthly distributions and an annual dividend of $14.03 per share.

Q3. How do Bitcoin ETFs generate income for dividends? Bitcoin ETFs use various strategies to generate income, including investing in Bitcoin futures contracts, employing covered call options, and utilizing yield optimization techniques. Some ETFs, like MAXI, even use a combination of Bitcoin futures and options writing on global equity indices.

Q4. Are Bitcoin ETF dividends paid monthly? The frequency of dividend payments varies among Bitcoin ETFs. While some, like BITO, MAXI, and YBIT, offer monthly distributions, others like BTF pay quarterly. YBTC stands out by offering weekly distributions.

Q5. What are the risks associated with dividend-paying Bitcoin ETFs? Dividend-paying Bitcoin ETFs come with several risks, including high market volatility, potential tracking differences from Bitcoin’s spot price, and limitations on upside potential due to options strategies. Additionally, dividend rates may fluctuate based on market conditions and are not guaranteed.

References

[1] – https://www.proshares.com/our-etfs/strategic/bito
[2] – https://www.simplify.us/sites/default/files/etfs/factsheet/2023-04/MAXI-Fact-Sheet-1Q23.pdf
[3] – https://www.yieldmaxetfs.com/our-etfs/ybit-bitcoin-option-income-etf/
[4] – https://coinshares.com/us/etf/btf/
[5] – https://money.usnews.com/funds/etfs/digital-assets/valkyrie-bitcoin-and-ether-strategy-etf/btf
[6] – https://stockanalysis.com/etf/btf/dividend/
[7] – https://www.tipranks.com/etf/btf/dividends
[8] – https://finance.yahoo.com/quote/BTF/performance/
[9] – https://www.dividend.com/etfs/btf-valkyrie-bitcoin-strategy-etf/
[10] – https://www.aaii.com/etf/ticker/MAXI
[11] – https://www.dividend.com/etfs/maxi-simplify-exchange-traded-funds-simplify-bitcoin-strategy-plus-income-etf/
[12] – https://money.usnews.com/funds/etfs/digital-assets/simplify-bitcoin-strategy-plus-inc-etf/maxi
[13] – https://www.simplify.us/sites/default/files/etfs/factsheet/2024-04/MAXI-Fact-Sheet-1Q24.pdf
[14] – https://www.dividend.com/etfs/ybit-yieldmaxtm-bitcoin-option-income-strategy-etf/
[15] – https://stockanalysis.com/etf/ybit/dividend/
[16] – https://www.yieldmaxetfs.com/faqs/
[17] – https://finance.yahoo.com/quote/YBIT/news/
[18] – https://www.roundhillinvestments.com/etf/ybtc/
[19] – https://money.usnews.com/funds/etfs/digital-assets/roundhill-bitcoin-covered-cll-strat-etf/ybtc
[20] – https://www.dividend.com/etfs/ybtc-roundhill-bitcoin-covered-call-strategy-etf/
[21] – https://stockanalysis.com/etf/ybtc/dividend/
[22] – https://www.stocktitan.net/news/YBTC/roundhill-investments-announces-ybtc-and-yeth-distributions-for-xmdx9bclwpgr.html
[23] – https://www.proshares.com/fund-highlights/bito
[24] – https://stockanalysis.com/etf/bito/dividend/
[25] – https://finance.yahoo.com/quote/BITO/