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What is a bitcoin futures ETF?

A Bitcoin Futures ETF is a type of Exchange Traded Fund that doesn't hold Bitcoin directly. Instead, it invests in Bitcoin futures contracts, which are agreements to buy or sell Bitcoin at a predetermined price on a set future date. This allows investors to speculate on the future price movements of Bitcoin without owning the cryptocurrency itself.

What is a bitcoin spot ETF?

Both Bitcoin spot ETFs and futures ETFs are financial instruments that allow investors to gain exposure to the price action of Bitcoin. But they accomplish this in different ways. Bitcoin spot ETFs hold actual BTC in custody.

Can a futures ETF short BTC?

Unlike Bitcoin spot ETFs, futures ETFs can be used to short BTC. In the United States and most other countries, ETFs are a type of regulated financial product, which means providers must meet specific criteria and obtain regulatory approval before offering it to the public.

Are futures ETFs a good investment?

Futures ETFs are considered more flexible financial instruments and bring with them their own set of benefits and risks. Unlike Bitcoin spot ETFs, futures ETFs can be used to short BTC.

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