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What is an exchange traded fund (ETF)?

An Exchange Traded Fund (ETF) is a basket of investments that usually includes shares and bonds. Funds are a ready-made investment portfolio run by a professional fund manager. They provide access to a diversified portfolio for usually a much lower cost than purchasing the individual investments yourself.

Are bitcoin ETFs a mutual fund?

However, unlike mutual funds, ETFs are traded directly on a stock exchange just like any other shares. Bitcoin ETFs do not currently own Bitcoin itself. Rather, they own companies and other ETFs that are related to Bitcoin or cryptocurrency in general or they own Bitcoin futures contracts.

Are ETFS a good investment?

Primary futures contracts such as the E-mini S&P 500, Treasuries, Crude, Metals all far out-trade in dollar terms their ETF counterpart. Good liquidity but not as much critical mass as futures. Futures track underlying very closely, with little tracking error. Some ETFs have major tracking error.

Do futures trade more than ETFs?

In fact, if you look at the average daily dollar volume comparisons between futures and their corresponding ETF, you will notice that futures trade multiple dollar amounts of their ETF counterpart. Treasuries, Crude oil and Gold trade 20-600 times greater dollar value than ETFs each day.

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