Let $e(s)$ be the error term of the hyperbolic circle problem, and denote by $e_alpha(s)$ the fractional integral to order $alpha$ of $e(s)$. We prove that for any small $alpha>0$ the asymptotic variance of $e_alpha(s)$ is finite, and given by an explicit expression. Moreover, we prove that $e_alpha(s)$ has a limiting distribution.