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.

How many CME contracts does a futures ETF hold?

A second offering by ProShares, this ETF holds 564 CME contracts which is equivalent to 2,820 bitcoins. This ETF holds 320 CME contracts, which is equivalent to 1,600 bitcoins. Futures ETFs do not trade in physical bitcoin, rather on futures contracts (or simply ‘futures’).

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 are the best bitcoin ETFs in the US?

The first Bitcoin ETF to trade on a major exchange in the US, ProShares Bitcoin Strategy ETF launched in Q4 2021 at the height of the last bull market. Currently holding 35,890 BTC, it is now the oldest and largest fund in the space. 2 of the top 12, or 16.6% of the Bitcoin ETFs are by ProShares and available to trade in the US.