#BitwiseBitcoinETF

Spot vs. Futures Bitcoin ETFs: Why Spot is Preferred

The difference between a Bitcoin futures ETF and a Bitcoin spot ETF is crucial for investors seeking Bitcoin exposure. Currently, the US market only offers Bitcoin futures ETFs, which track Bitcoin futures contracts traded on exchanges like the CME. These futures contracts don't directly hold Bitcoin; instead, they are agreements to buy or sell Bitcoin at a future date.

This structure introduces potential tracking errors, meaning the ETF's price may not perfectly mirror Bitcoin's spot price $BTC

Additionally, futures ETFs often incur higher costs due to the need to "roll over" contracts. A spot ETF, like the proposed #BitwiseBitcoinETF , directly holds Bitcoin, providing a more accurate and cost-effective way to track its price. This is why many investors and analysts prefer a spot ETF, as it offers more direct exposure to Bitcoin's performance. The approval of a spot ETF would be a significant development for the crypto market.