𝐋𝐚𝐮𝐧𝐜𝐡 𝐨𝐟 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐛𝐢𝐭𝐜𝐨𝐢𝐧 𝐟𝐮𝐭𝐮𝐫𝐞𝐬 𝐄𝐭𝐟 . 𝐈𝐬 𝐢𝐭 𝐰𝐨𝐫𝐭𝐡 𝐚𝐥𝐥 𝐭𝐡𝐞 𝐇𝐲𝐩𝐞 ?
₿The first Bitcoin Futures ETF; The ProShares Bitcoin Strategy ETF (ticker symbol: BITO) will start trading today or this week if there is no last minute objection by USA SEC. ₿
Four other Bitcoin futures ETFs may be trading by the end of the month, with likely many more to come in future as mention from the Bloomberg article below.
First thing to take note of such Bitcoin Futures Etfs is that such ETF price is based on the futures contract prices of Bitcoin and 𝐍𝐎𝐓 base on the spot prices of Bitcoin. So they are Not a direct investment on the bitcoin itself and not back by physical bitcoins.
Another thing to take note is that a futures-based bitcoin ETF could potentially be more expensive than investing in bitcoin directly or in Etfs that is physically back by actual Bitcoins ( if SEC were to approve such physically back bitcoin Etfs in future) due to high cost of rolling into futures contracts.
So, this may result in potential higher tracking error in the longer term on such bitcoin futures Etfs prices when compare to the price of Spot Bitcoin in the long run.
So in our view , it may be prudent to wait for a while first and observe how its tracking error is like Versus the price of Spot bitcoin
Below are 2 articles which highlight the Pros and Cons of such Bitcoin Futures Etfs which we suggest investors should read & understand first before deciding to invest in such Bitcoin futures Etfs or Not .
https://www.bloomberg.com/…/bitcoin-btc-futures-etf-price-w…
https://www.cnbc.com/…/sec-is-set-to-allow-bitcoin-futures-…
You may contact us if you have any questions.₿
