What are bitcoin futures?

The Commodity Futures Trading Commission (CTFC) regulates the overall futures market, and the agency considers Bitcoin a commodity, so Bitcoin futures are commodity futures. Bitcoin futures contracts trade on the Chicago Mercantile Exchange (CME), which introduces new monthly contracts for cash settlement.

What is the leverage in the bitcoin futures market?

Because each Bitcoin futures contract represents 5 BTC, there is inherent leverage in the Bitcoin futures market. Bitcoin futures traders often use that leverage to speculate on short-term swings in the market in an attempt to generate large returns on relatively small upfront investments.

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.

Is Bitcoin (BTC) a good investment?

Bitcoin ( BTC -0.46%) has been an amazing investment. Its price has gone up 20-fold since 2018. Now a single coin will run you about $63,000. Bitcoin has become a new asset class. El Salvador now recognizes Bitcoin as a currency. What does the future hold for this top dog in the cryptocurrency market?