The Strategic Case for BETH: Capturing Crypto Exposure with ETF Efficiency

The ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) has emerged as a compelling vehicle for investors seeking diversified exposure to the two largest cryptocurrencies while leveraging the structural advantages of an ETF. By combining market capitalization-weighted allocation with monthly distributions, BETH offers a unique blend of income potential and strategic alignment with the evolving crypto landscape.

Market Cap-Weighted Allocation: A Dynamic Hedge Against Volatility

BETH’s design is rooted in a simple yet powerful principle: mirroring the relative market capitalizations of Bitcoin and Ether. As of August 29, 2025, the fund allocated 81.82% of its assets to Bitcoin futures and 18.93% to Ether futures, reflecting Bitcoin’s continued dominance despite a decline in its market share from 64.5% in early July to 59.7% by mid-August [1][3]. This dynamic weighting ensures the ETF automatically adjusts as market conditions shift, reducing the need for active rebalancing and minimizing tracking errors. For investors, this means exposure that evolves with the market rather than against it.

The use of futures contracts, rather than direct crypto holdings, further enhances BETH’s efficiency. Futures allow the fund to maintain exposure without the logistical and regulatory complexities of custodial storage for physical cryptocurrencies [1]. However, this structure introduces roll costs when contracts near expiration, a factor investors should weigh against the fund’s 0.95% expense ratio [1].

Monthly Distributions: A Steady Income Stream in a Volatile Market

BETH’s monthly distribution model has become a standout feature for income-oriented investors. In July 2025, the ETF paid $1.9729 per share, and by September 2025, this had risen to $3.37 per share [2]. These payouts, while not guaranteed, reflect the fund’s ability to generate returns in both bullish and bearish cycles. The consistency of these distributions—supported by the underlying futures contracts’ performance—provides a predictable income stream that contrasts with the erratic price swings of individual crypto assets.

Critically, BETH’s distributions are structured as returns of capital rather than traditional dividends, which may have tax implications for investors. However, this approach aligns with the fund’s actively managed structure and avoids the complexities of dividend taxation in a rapidly changing asset class [1].

Strategic Advantages in a Fragmented Market

The strategic case for BETH strengthens when viewed through the lens of broader market trends. Bitcoin’s waning dominance—despite its 81.82% allocation in BETH—highlights growing institutional and retail interest in Ether [3]. By capturing both assets in a single vehicle, BETH mitigates the risk of overexposure to any one cryptocurrency while capitalizing on their combined growth potential.

Moreover, BETH’s performance metrics underscore its efficiency. Over the past year, the ETF has delivered a 70.18% return, outperforming the ETF Database Category Average of 46.21% [2]. This outperformance, coupled with its monthly distribution schedule, positions BETH as a versatile tool for both capital appreciation and income generation.

Conclusion: A Balanced Approach to Crypto Exposure

For investors seeking to navigate the crypto market without direct ownership of volatile assets, BETH offers a compelling solution. Its market cap-weighted structure ensures alignment with the largest cryptocurrencies, while its monthly distributions provide a steady income stream. As Bitcoin and Ether continue to shape the digital asset landscape, BETH’s dual focus on efficiency and adaptability makes it a strategic choice for both conservative and growth-oriented portfolios.

Source:
[1] BETH | Bitcoin & Ether Market Cap Weight ETF, [https://www.proshares.com/our-etfs/strategic/beth?promoCode=SRPT5F4A7]
[2] BETH ProShares Bitcoin & Ether Market Cap Weight ETF, [https://etfdb.com/etf/BETH/]
[3] VanEck Mid-August 2025 Bitcoin ChainCheck, [https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vaneck-mid-august-2025-bitcoin-chaincheck/]