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How do futures ETFs work?

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. Futures ETFs give investors access to the futures market without having to trade on the futures markets.

What is a bitcoin futures ETF?

Like the value of Bitcoin itself, these ETFs are highly volatile. A Bitcoin futures ETF is an exchange-traded fund composed of assets related to Bitcoin's price. They are traded on a traditional exchange instead of a cryptocurrency exchange. Currently, the underlying assets within Bitcoin futures ETFs are Bitcoin futures contracts.

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.

What is an exchange traded fund (ETF)?

An ETF is an investment vehicle that invests its assets in securities to track a benchmark, such as an index or sector. Exchange-traded funds (ETFs) provide diversity and are a cost-effective approach to investing. In 2023, the U.S. domestic ETF market was about $7.3 trillion. What Is an Exchange-Traded Fund (ETF)?

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