#BitwiseBitcoinETF

A bitcoin futures exchange-traded fund (ETF) issues publicly traded securities that provide exposure to the price movements of bitcoin futures contracts.

Here’s how it works: An investment company creates a subsidiary that acts as a commodity pool. The pool typically trades bitcoin futures contracts in an attempt to mimic the spot price of bitcoin. But there are also costs, such as “roll premiums” and management fees. Additionally, futures contracts do not track spot prices exactly, so returns may never be as high as spot market prices or synchronize with them.

ETFs are investment companies regulated by the SEC. The shares issued by the ETF are securities that must be registered with the SEC. Like mutual funds, ETFs have investment objectives and employ professional money managers to achieve those objectives. However, in the case of managed commodity futures funds, investment companies typically create subsidiaries that serve as commodity pools.

A commodity pool is an investment fund or similar entity that trades commodity futures contracts for the benefit of investors. The CFTC regulates commodity trading advisors and commodity pool operators, who make trading decisions and manage the pools, respectively.

Management fees and other expenses must also be paid. In the case of managed commodity futures funds, the management of the parent investment company must be considered, as well as the management of the affiliated commodity pool.