What is a futures ETF?

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. A futures contract is an agreement between a buyer and a seller based on an underlying asset.

How do ether futures work?

Suppose you enter a three-month ether futures contract to buy ether at $1,500. This locks in the price you will pay in three months, no matter ether’s market price at that time. If ether trades above $1,500 in three months, then you profit by getting ether below market price.

How do ETFs track futures contracts?

For futures, ETFs track their contract prices by spread-out exposure across various expiration dates. This provides continuous investment exposure without manually rolling over positions yourself. This also means that these ETFs hold futures contracts and do not directly hold the underlying assets they track.

Are bitcoin futures ETFs regulated by the CFTC?

The IRS tends to treat Bitcoin and other crypto as property while the Commodity Futures Trading Commission (CFTC) treats it as a commodity. Bitcoin Futures ETFs are regulated by the CFTC. Bitcoin futures ETFs are funds that bundle Bitcoin futures contracts.