What is a bitcoin futures ETF?

Like the value of Bitcoin itself, these ETFs are highly volatile. A Bitcoin futures ETF is an exchange-traded fund composed of assets related to Bitcoin's price. They are traded on a traditional exchange instead of a cryptocurrency exchange. Currently, the underlying assets within Bitcoin futures ETFs are Bitcoin futures contracts.

What is a bitcoin spot ETF?

In a futures ETF, traders don't own any bitcoin. Instead, they only need to enter an agreement about the price of bitcoin on a certain date in the future. Whereas a Bitcoin Spot ETF requires investors to actually buy Bitcoin, which they can later sell as they wish.

How do futures ETFs work?

Futures are traded, tracked, and monitored on a regulated exchange like the Chicago Board of Trade or New York Mercantile Exchange. Exchange-traded funds can use futures as the assets that make up the fund. Futures ETFs give investors access to the futures market without having to trade on the futures markets.

What is an exchange traded fund (ETF)?

An Exchange Traded Fund (ETF) is a type of investment fund that's traded on stock exchanges, much like stocks. These funds usually hold a variety of assets such as stocks, commodities, or cryptocurrencies and aim to track the performance of a specific index or asset.