BITO
ProShares Bitcoin Strategy ETF
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.
0 / 2,387.013
2,326.521 / 2,387.013
865.78 / 2,387.013
48.079 / 48.079
- 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.
- 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.
- 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.
- 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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