How to trade Bitcoin futures?

The steps to conduct trade in Bitcoin futures are the same as those for a regular futures contract. You begin by setting up an account with the brokerage or exchange where you plan to trade. Once your account is approved, you will need another approval to start futures trading from the trading service provider.

What happens when Bitcoin futures expires?

If there are only two days to expiry, the futures price calculation formula simply tells us that the price of the Bitcoin futures contract will remain very close to its spot price because of the time remaining. But its spot price may shoot up or down significantly within hours because of high volatility.

What is a bitcoin ETF?

Four years later, ProShares made history again by launching a Bitcoin ETF based on futures contracts, the first ever crypto exchange-traded fund to gain regulatory approval to trade on a major U.S. market. Bitcoin futures offer investors a unique way to speculate in the crypto market and hedge their crypto holdings.

Does the SEC approve bitcoin futures ETFs in 2021?

Nevertheless, the SEC made history in 2021 when it approved the first Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), to trade on the New York Stock Exchange. Instead of investing in Bitcoin directly, the BITO fund and other Bitcoin futures ETFs invest in a diversified basket of Bitcoin futures contracts.