The BETE ETF is an active ETF designed to reflect the performance of Bitcoin and Ether on an equal-weighted basis. Rather than holding the spot assets, it uses futures contracts, so factors beyond the underlying asset price movements — including the structure of the futures market — can also affect performance.

It may suit investors who want combined exposure to Bitcoin and Ether without using a crypto wallet to access the assets directly.

The ETF is actively managed by ProShares.

This product seeks equal-weight exposure to both crypto assets by using Bitcoin and Ether futures contracts. Instead of holding the spot assets directly, the process of rolling futures contracts, along with margin and collateral requirements, can create differences between actual performance and the spot price.

• Structure that reflects Bitcoin and Ether on an equal-weighted basis in a single product
• Futures-based approach accessible through a brokerage account without the need for a crypto wallet

Assets under management (AUM) stand at $7.4M, and the total expense ratio is 0.95% annually.

Because the structure does not hold spot crypto assets directly, it is more important to review how the futures contracts work and the associated trading costs rather than focusing on the custody method.

ProShares Bitcoin and Ether Equal Weight ETF Performance and Flows

The performance of the BETE ETF is highly sensitive to Bitcoin and Ether prices, the futures curve, and shifts in crypto-market risk appetite. Although it reflects both underlying assets, the volatility-dampening effect may be limited during periods when both assets move sharply in the same direction.

Demand for crypto-related ETFs can vary significantly depending on the regulatory environment, the choice between spot and futures products, and investors' risk appetite. The BETE ETF is accessible through a brokerage account without holding spot assets, but capital allocation decisions should be made only after understanding futures contract rolls and collateral requirements.

The convenience of accessing both crypto assets on an equal-weighted basis is a strength, but the futures structure and elevated volatility are the key risks.

The IBIT ETF shown in the table offers Bitcoin-focused exposure, and the FBTC ETF and GBTC ETF can also be compared as Bitcoin-focused alternatives. The ETHA ETF focuses on Ether-focused exposure, and the BTC ETF likewise provides Bitcoin exposure. These products differ from the BETE ETF in their underlying asset scope, spot-versus-futures structure, fee levels, and asset size, so product structures should be compared before investing.

When reviewing the BETE ETF, investors should look beyond crypto-asset prices themselves and consider the futures contract structure, distribution history, and trading method. The convenience of not holding spot assets comes at the cost of accepting futures-market-specific costs and price differences, which should be evaluated.

The crypto-asset market can be affected by rapid price swings, liquidity changes, and the regulatory environment. Because the BETE ETF uses futures contracts, in addition to spot price movements, futures rolls, collateral requirements, and the gap between market price and net asset value can also affect loss risk.

The BETE ETF is a product that investors seeking futures-based exposure combining Bitcoin and Ether on an equal-weighted basis can review for its structure. However, it is important to understand volatility and futures costs, and to avoid assuming that the distribution history is maintained on a regular schedule.

The convenience of accessing both crypto assets on an equal-weighted basis is a strength, but the futures structure and elevated volatility are the key risks.

The IBIT ETF shown in the table offers Bitcoin-focused exposure, and the FBTC ETF and GBTC ETF can also be compared as Bitcoin-focused alternatives. The ETHA ETF focuses on Ether-focused exposure, and the BTC ETF likewise provides Bitcoin exposure. These products differ from the BETE ETF in their underlying asset scope, spot-versus-futures structure, fee levels, and asset size, so product structures should be compared before investing.

When reviewing the BETE ETF, investors should look beyond crypto-asset prices themselves and consider the futures contract structure, distribution history, and trading method. The convenience of not holding spot assets comes at the cost of accepting futures-market-specific costs and price differences, which should be evaluated.

The crypto-asset market can be affected by rapid price swings, liquidity changes, and the regulatory environment. Because the BETE ETF uses futures contracts, in addition to spot price movements, futures rolls, collateral requirements, and the gap between market price and net asset value can also affect loss risk.

The BETE ETF is a product that investors seeking futures-based exposure combining Bitcoin and Ether on an equal-weighted basis can review for its structure. However, it is important to understand volatility and futures costs, and to avoid assuming that the distribution history is maintained on a regular schedule.