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What is a bitcoin futures ETF?

A bitcoin futures ETF is another type of regulated financial product that allows investors to indirectly participate in the bitcoin market. A bitcoin futures ETF is an exchange-traded fund that allows people to gain investment exposure to bitcoin prices without having to go out and buy the cryptocurrency directly.

What is a bitcoin spot ETF?

Both Bitcoin spot ETFs and futures ETFs are financial instruments that allow investors to gain exposure to the price action of Bitcoin. But they accomplish this in different ways. Bitcoin spot ETFs hold actual BTC in custody.

How do futures ETFs work?

Futures ETFs do not trade in physical bitcoin, rather on futures contracts (or simply ‘futures’). These contracts allow traders to agree on a predetermined price to buy or a sell an asset on a specific date or month in the future. Futures are traded on exchanges, the largest of which is the CME group.

What are the best bitcoin ETFs to invest in?

Several countries beat the US to the punch by approving Bitcoin ETFs that directly invest in the cryptocurrency. The biggest spot Bitcoin ETFs trading internationally are: Launched in February 2021, the Purpose Bitcoin ETF was the first spot Bitcoin ETF in North America. It currently holds over 25,000 bitcoins as of September 2023.

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