What Are the Differences between Bitcoin Spot ETF and Bitcoin Futures ETF?
Bitcoin is the most popular and valuable cryptocurrency in the world, with a market capitalization of over $1 trillion as of August 2023. Many investors are interested in gaining exposure to this digital asset, but they may not want to deal with the challenges and risks of buying, storing, and securing Bitcoin directly. That's where Bitcoin exchange-traded funds (ETFs) come in. Bitcoin ETFs are investment vehicles that track the price of Bitcoin or related assets, such as Bitcoin futures contracts or blockchain companies. They are traded on traditional stock exchanges, like any other ETF, and can be bought and sold through brokerage accounts. Bitcoin ETFs offer several advantages over owning Bitcoin directly, such as liquidity, diversification, tax efficiency, and regulatory oversight. However, not all Bitcoin ETFs are the same. There are two main types of Bitcoin ETFs: spot ETFs and futures ETFs. Spot ETFs aim to track the current market price of Bitcoin, while futures ET