BITO

ProShares Bitcoin Strategy ETF

DOUBTFUL — SCREEN DOES NOT PASSetf

Is BITO Halal?

Bitcoin futures ETF — inherits Bitcoin's DOUBTFUL status plus futures gharar.

What You Should Know

BITO's November 30, 2025 report shows $2.387 billion of assets and reports $48.079 million of interest income as all of its investment income. It obtains bitcoin exposure through futures and swaps rather than directly holding bitcoin; Bitcoin's scholar-dependent status plus derivative gharar, leverage and settlement concerns make the examined financial screens fail.

⚠️ Concerns

  • Bitcoin DOUBTFUL status
  • Futures add gharar
  • Speculative

Current quantitative Sharia screen

Based on N-CSRS figures for the period ended 2025-11-30; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 2,387.013

Cash + interest-bearing securities / assets
97.47%Above limit
Below 33.333% under FTSE Yasaar

2,326.521 / 2,387.013

Receivables + cash / assets
36.27%Within limit
Below 50% under FTSE Yasaar

865.78 / 2,387.013

Non-compliant income / revenue
100.00%Above limit
No more than 5% under FTSE Yasaar

48.079 / 48.079

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 0.00%, liquidity/assets is 97.47%, receivables plus cash/assets is 36.27% and disclosed interest income is 100%; liquidity and income exceed the examined limits.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 97.47% and receivables plus cash/assets is 36.27%, above the examined MSCI asset limits; derivative and cryptocurrency classification remains qualitative.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Liquidity/assets is 97.47%, above the examined Malaysia limit; this is not an official SAC classification of a cryptocurrency derivative fund.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

Market-cap denominator methods do not apply cleanly to a derivative-based bitcoin fund.

Business-activity disclosure

BITO is a derivative-based bitcoin ETF consolidated with a Cayman strategy portfolio. Bitcoin's treatment differs among scholars, and futures and swap contracts add gharar, leverage, settlement and speculation questions.

Limitation: The filing reports derivative exposure and interest income rather than operating-company revenue; it does not provide a school-neutral cryptocurrency or contract-compliance conclusion.

Purification

BITO's interest income is disclosed, but no scholar-approved purification percentage is inferred from a derivative fund's aggregate distribution.

Inputs, assumptions and primary sources
  • Amounts are USD millions from BITO's November 30, 2025 semiannual report.
  • The report shows USD 2,387.013 million of total assets, USD 805.288 million of cash and segregated futures/swap collateral, USD 1,521.233 million of repurchase agreements and Treasury bills, and USD 60.493 million of interest, share-issuance and variation-margin receivables.
  • BITO reports USD 48.079 million of interest income against USD 48.079 million of investment income; the fund-level income ratio is therefore 100%.
  • The report states that BITO obtains bitcoin exposure through futures and swap agreements rather than directly holding bitcoin; Bitcoin's status and derivative contract form remain qualitative and scholar-dependent.
  • ETF look-through ratios are not an official FTSE, MSCI or Malaysia classification.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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