What is a bitcoin futures ETF?

The approval of a futures ETF for bitcoin will be seen as only a partial victory by some in the crypto community, as the outlook for a similar fund that tracks the spot-market price of bitcoin remains unclear. An ETF, which stands for “exchange-traded fund,” is an asset that trades on the open market like a stock and is open to regular investors.

Will the SEC allow the first US bitcoin futures exchange-traded fund?

The Securities and Exchange Commission is poised to allow the first U.S. Bitcoin futures exchange-traded fund to begin trading in a watershed moment for the cryptocurrency industry, according to people familiar with the matter.

What is the ProShares bitcoin strategy ETF?

The ProShares Bitcoin Strategy ETF, which will give exposure to bitcoin futures contracts but not the spot market, will trade under the ticker “BITO.” The Securities and Exchange Commission had not formally approved the creation of bitcoin futures ETF as of Friday afternoon and the agency may never make a formal declaration of approval for it.

Should you invest in Bitcoin funds?

Although the funds may have a “very high correlation” with bitcoin, the asset won’t mirror values of the digital currency because it tracks the price of future contracts, Sood said. It’s just the ultimate risk that you would ever take. Moreover, it costs more to own funds over individual assets.