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.

Could an ETF track Ethereum futures?

An ETF tracking Ethereum futures would essentially invest in futures contracts of the industry’s second-largest cryptocurrency that are traded on the CFTC-regulated Chicago Mercantile Exchange (CME) rather than directly holding the underlying asset.

What is an ETF & how does it work?

An ETF (a company) will purchase futures contracts and then offer a securitized version to investors. The ETF doesn't take possession of the underlying asset but continues to trade contracts to keep the futures ETF running. The fund will purchase contracts so that it mirrors the index that it is designed to track.

What are futures & how do they work?

Futures are contracts between a buyer and seller for a specific price at a specific date in the future. 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.