One of the basic risks for Bitcoin futures ETFs is that spot Bitcoin ETFs simply make more sense that tracking futures. Another is that spot ETFs will be cheaper to operate.
https://youtu.be/A7zdIPqJx4k
5. https://profitableinvestingtips.com/profitab
le-investing-tips/risks-for-bitcoin-futures-
Here are six ETFs that track Bitcoin futures with
the biggest having $1.1 billion in assets and the
smallest having $13 million.
ProShares Bitcoin Strategy ETF
ProShares Short Bitcoin ETF
VanEck Bitcoin Strategy ETF
Valkyrie Bitcoin Strategy ETF
Simplify Bitcoin Strategy PLUS Inc
Global X Blockchain & Bitcoin Strategy ETF
6. https://profitableinvestingtips.com/profitab
le-investing-tips/risks-for-bitcoin-futures-
Because currently there are no ETFs that track the
spot price of Bitcoin these ETFs are the best choices
for tracking Bitcoin without having to own Bitcoin.
The correlation between futures and the spot price
of Bitcoin is about 99%.Thus a trader can use this
approach to benefit from a rising Bitcoin price
without having to deal with blockchains, wallets, or
keys. Nevertheless, these are workarounds instead
of a direct link to the price of Bitcoin.That is what
people will have when spot Bitcoin ETFs are
approved.
9. https://profitableinvestingtips.com/profitab
le-investing-tips/risks-for-bitcoin-futures-
A concern voiced by Bloomberg is that spot Bitcoin
ETFs threaten futures ETFs.Their estimate is
that a spot Bitcoin ETF market would come to
about $100 billion which dwarfs the futures ETF
market. Spot prices are easier to understand for
mom and pop investors and traders. And why
invest in something that is almost the price of
Bitcoin when you can actually invest in
something that tracks Bitcoin’s price directly.
10. https://profitableinvestingtips.com/profitab
le-investing-tips/risks-for-bitcoin-futures-
The other issue will be the cost of buying shares of
a spot Bitcoin ETF versus the current price for a
futures ETF. One of the major players in the spot
Bitcoin ETF world if they all get approval will be
Blackrock. Blackrock currently has 412 ETFs and
$2.5 billion under management.They compete
by cutting their fees to the point of driving
customers away from their competition.
14. https://profitableinvestingtips.com/profitab
le-investing-tips/risks-for-bitcoin-futures-
So, the ETFs that track Bitcoin futures need to
constantly roll over (sell and buy again) in order
to retain something near the current Bitcoin
price.This is more expensive than just buying
and holding Bitcoin.Thus Bitcoin futures ETFs
are going to be at a disadvantage when it comes
to overhead with spot Bitcoin ETFs.This will be
even before they have engaged in a price cutting
war with the likes of Blackrock.